French Inflation Rate Rises to 1.1% in July

France's annual inflation is expected to slow to 1.1 percent in July 2019 from 1.2 percent in the previous month. The slight decrease in inflation should result from a deceleration in energy prices, services and tobacco. Meanwhile, food prices should be more dynamic than in June and those of manufactured goods should fall at a softer pace.

Prices are expected to soften for energy (0.8 percent vs 2.4 percent in June); services (1.1 percent vs 1.2 percent) and tobacco (8.8 percent vs 9.0 percent). In contrast, food prices should rose faster (2.9 percent vs 2.6 percent), namely fresh food (6.7 percent vs 3.7 percent); while manufactured products cost is expected to fall less (-0.6 percent vs -0.7 percent). 

On a monthly basis, consumer prices are expected to decrease 0.2 percent, after a 0.2 percent gain in the previous month. Manufactured goods and tobacco prices should fell while energy cost is expected to drop further. On the other hand, services prices should gather pace, due to the stronger rise in the prices of transport and "other services” transport. Finally, tobacco prices should increase slightly.

The harmonized index of consumer prices is expected to rise 1.3 percent from the previous year (vs 1.4 percent in June) while it is expected to fall 0.2 percent month-over-month (vs 0.3 percent in June).

French Inflation Rate Rises to 1.1% in July

INSEE | Rafael Gonzalez |
7/31/2019 7:24:13 AM