France's consumer price index rose in line with forecasts

According to the report from INSEE, in July 2020, the Consumer Price Index (CPI) accelerated by 0.4% over a month, after +0.1% in the previous month. This rise was the result of higher prices for services (+0.9% year on year after +0.3%), a slight increase in tobacco prices (+0.1% after a stability in June) and a stability of manufactured products, after a 0.3% drop in the previous month. Contrariwise, the fall in food prices was higher (−0.9% after −0.8%) and energy prices slowed down to +1.0% after +1.8%.

Seasonally adjusted, consumer prices rose by 0.7% in July, after +0.1% in June.

Year on year, consumer prices accelerated to 0.8%, after +0.2% in the previous month. This rise in inflation came from a sharp year-on-year rebound in manufactured products, linked to the postponed summer sales, and a smaller fall in energy prices. Contrariwise, food prices and, to a lesser extent, services and tobacco prices, slowed down.

Year on year, core inflation rose, in July, to +1.4% after +0.3% in the previous month. The Harmonised Index of Consumer Prices (HICP) increased by 0.4% over a month, after +0.1% in the previous month; year on year, it accelerated to +0.9%, after +0.2% in the previous month.