France consumer prices increased by 0.5% in August, as expected

According to the report from INSEE, in August 2019, the Consumer Prices Index (CPI) recovered, to +0.5% over a month, after a 0.2% downturn in July. This rebound resulted from that, seasonal, in manufactured product prices (+0.9% after −2.8% in July) due to the end of summer sales. Energy prices were stable after an accentuated drop in the previous month (−1.1% in July). Services prices slowed down (+0.4% after +1.0%), essentially due to airfares and accommodation services prices. Food prices rose by 0.5%, as in the previous month. Finally, tobacco prices were stable over a month.

Seasonally adjusted, consumer prices barely increased: +0.1% over a month, as in July.

Year on year, consumer prices slightly slowed down: +1.0% in August, after +1.1% in July. This slight fall in inflation came from a more marked year-on-year drop in manufactured products prices, partly offset by a barely sharper rise in food prices. Moreover, the inflation in energy and services was stable.

Year on year, core inflation dropped in August: +0.7% year on year, after +0.9% in the previous month. The Harmonised Index of Consumer Prices (HICP) rebounded over a month, to +0.5% after −0.2% in July; year on year, it rose by 1.3%, as in the previous month.