Key facts
- French harmonized inflation stood at 2.0% year-on-year in June.
- This marks a slowdown from 2.8% in May.
- The June figure was below the 2.3% average estimate from analysts.
- Energy prices decreased by 5% month-on-month, contributing to the slowdown.
- Services inflation also eased to 1.8%.
Consumer prices in France rose 2.0% year-on-year in June on a European Union-harmonised basis, according to preliminary data from the statistics office INSEE. This figure represents a slowdown from the 2.8% inflation rate recorded in May and fell below the average analyst expectation of 2.3%.
The deceleration in inflation was primarily attributed to a 5% monthly decrease in energy prices, particularly petroleum products, although these remained elevated. Services inflation also eased to 1.8% from 2.1% in May, while prices for manufactured goods continued to decline for the third consecutive month, reaching -0.9%.
The harmonised inflation rate is adjusted to allow for comparison with inflation rates in other euro zone countries. The June figure aligns with the European Central Bank's target.