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- French consumer price growth stabilized in August
French consumer price growth stabilized in August
According to the provisional estimate from Insee, over a year, the Consumer Price Index (CPI) should increase by 1.1% in August 2019, as in the previous month. Economists had expected a 1.0% increase.
This stability in inflation should be due to a more marked fall in manufactured good prices and a slight slowdown in those of energy and tobacco, offset by an acceleration in food prices. The services prices should increase at the same rate as in the previous month.
Over one month, consumer prices should recover significantly (+0.5% in August, after –0.2% in July). Prices should be driven mainly by the seasonal rebound in manufactured goods prices after the end of summer sales in metropolitan France and by the equally seasonal rise in the prices of certain tourism-related services. In addition, food prices should continue to rise mainly due to fresh foods. Tobacco and energy prices should be stable this month. The increase in electricity prices should be offset by lower prices for petroleum products and domestic gas.
Year on year, the Harmonised Index of Consumer Prices should slow down (+1.2% after +1.3% in July). Over one month, it should rebound to +0.5%, after –0.2% the previous month.
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