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- French CPI below forecasts - Insee
French CPI below forecasts - Insee
In June 2016, the Consumer Prices Index (CPI) rose by 0.1% over a month after +0.4% in May. Seasonally adjusted, it increased also by 0.1%. Year-on-year, the CPI increased by 0.2%, after a stability in May 2016.
This month-on-month increase in June came mainly from the strengthening of petroleum product prices for the fourth month in a row, and from the seasonal rebound in prices of some services at the edge of summer. It was partly offset by the seasonal decline in fresh food and manufactured product prices, with the beginning of summer sales.
In June 2016, energy prices rose as strongly as in the previous month (+2.2%). Year-on-year, they declined by 3.1% (-5.7% in the previous month). The increase over the month was due to petroleum product prices which were still up sharply (+4.0% after + 4.1% in May; -6.1% year-on-year), as a result of the recovery of crude oil prices since the beginning of the year. In detail, the heat fuel prices continued to rise at a fast pace (+5.9% % in June after +8.5%; -11.2% year-on-year). In comparison, the motor fuel price increases were more limited: diesel increased by 4.7% in June (after +4.4% in May; -4.7% year-on-year) and gasoline by 2.6% (after +2.4%; -6.2% year-on-year). Moreover, gas prices were stable in June (-10.0% year-on-year), like electricity fares (+4.1% year-on-year).
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