French Inflation Rate Rises to 1.2% in June

The inflation rate in France is expected to accelerate to 1.2 percent year-on-year in June 2019 from a near two-year low of 0.9 percent in the previous month, a preliminary estimate showed. Services and food prices should rise at a faster pace while manufactured goods deflation is likely to slow.

This rise in inflation over a year should result from a stronger increase in services and food prices and a drop a little less marked in those of manufactured goods. This increase should be slightly offset by a lesser dynamism in energy prices.

Over one month, consumer prices should grow barely more than in May (+0.2% after +0.1%). Services prices should rebound in the wake of those in transport and the prices of communication services should rise sharply. Food prices should slow down. Those of energy should fell back, due to a drop in petroleum product prices, partly offset by an increase in electricity fees. The prices of manufactured goods and tobacco should be stable.

Year on year, the Harmonised Index of Consumer Prices should gather pace (+1.4% after +1.1% in May). Over one month, it should rise by 0.3%, after +0.1% in the previous month.

French Inflation Rate Rises to 1.2% in June

INSEE | Joana Ferreira |
6/28/2019 6:51:27 AM