French consumer prices unexpectedly rose in June

According to the report from INSEE, in June 2020, the Consumer Price Index (CPI) increased by 0.1% over a month, as in the previous month. Energy prices rebounded over a month (+1.8% after −2.1% in May). Those of services slowed down, to +0.3% after +0.4%. Tobacco prices were stable, after +0.4% in the previous month. The drop in manufactured product prices was higher (−0.3% after −0.1%), and food prices sharply fell back (−0.8% after +0.5%).

Seasonally adjusted, consumer prices rose by 0.1% in June, after a stability in May.

Year on year, consumer prices rose by 0.2%, after +0.4% in the previous month. This drop in inflation came from a slowdown in services and food prices and a sharper drop in manufactured product prices. Contrariwise, the fall in energy prices was attenuated. Finally, tobacco prices rose at the same pace as in the previous month.

Year on year, core inflation fell, in June, to +0.3% after +0.6% in the previous month. The Harmonised Index of Consumer Prices (HICP) increased by 0.1% over a month, after +0.2% in the previous month; year on year, it slowed down, to +0.2%, after +0.4% in the previous month.