Consumer price growth in France accelerated in June

According to the report from Insee, in June 2019, the Consumer Prices Index (CPI) rose by 0.2% over a month, after +0.1% in May 2019. This increase, barely stronger than in the previous month, came from a rebound, over a month, in services prices (+0.5% after −0.2%), partly offset by a slight downturn in energy prices (−0.1% after +0.6%) and a slowdown in those of food (+0.1% after +0.7%). The prices of manufactured products were stable over a month, after +0.2% in May. Similarly, tobacco prices were unchanged in June after +0.3% in the previous month.

Seasonally adjusted, consumer prices rebounded to +0.3% over a month, after −0.1% in May.

Year on year, consumer prices gathered pace in June to +1.2% after +0.9% in May 2019. This rise in inflation resulted from a strong acceleration in services prices and, to a lesser extent, in those of food. Contrariwise, energy prices sharply slowed down. Those of manufactured products dropped by 0.7%, as in the previous month. Finally, tobacco prices rose by 9.0% year on year after +9.1% in May.

Year on year, core inflation rose by 0.9%, after +0.5% in May. The Harmonised Index of Consumer Prices (HICP) accelerated, over a month, to +0.3% in June, after +0.1% in May; year on year, it grew by 1.4%, after +1.1% in the previous month.