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- France's consumer price index fell 0.1% in August, as expected
France's consumer price index fell 0.1% in August, as expected
According to the report from INSEE, in August 2020, the Consumer Price Index (CPI) edged down by 0.1% over a month, after +0.4% in July 2020. Manufactured product prices dropped sharply (−1.2%, after a stability in July). Those of energy (+0.3% after +1.0%) and services (+0.3% after +0.9%) slowed down and those of tobacco were stable after a 0.1% increase in July. Finally, food prices rebounded slightly (+0.2% after a 0.9% drop in the previous month).
Seasonally adjusted, consumer prices fell back by 0.5%, after +0.7% in the previous month.
Year on year, consumer prices slowed down to 0.2%, after +0.8% in the previous month. This drop in inflation resulted from a downturn in manufactured products, linked to the postponed summer sales, and a slowdown in food prices. Contrariwise, energy prices fell less year on year than in July. Finally, the prices of services and tobacco rose, year on year, as the same rate as in the previous month.
Year on year, core inflation dropped, in August, to +0.5% after +1.4% in the previous month. The Harmonised Index of Consumer Prices (HICP) edged down by 0.1% over a month, after +0.4% in the previous month; year on year, it slowed down to +0.2%, after +0.9% in July.
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