Key facts
- French consumer prices rose 1.8% year-on-year in June.
- This marks a slowdown from 2.4% in May.
- The figure missed analyst expectations of 2.1%.
- Slower energy price growth was the primary driver of the decline.
- Services and food inflation also eased, while manufactured goods prices fell faster.
- The monthly CPI decreased by 0.2%.
French consumer prices rose less than anticipated in June, with the annual inflation rate slowing to 1.8% from 2.4% in May, according to preliminary data from statistics agency INSEE. Analysts surveyed by Reuters had expected a rate of 2.1%.
The slowdown was primarily attributed to a sharp deceleration in energy price growth, particularly for petroleum products. Energy prices were still significantly higher year-on-year, though the increase was less pronounced than in the previous month. Inflation for services also eased to 1.8% from 2.1%, and food inflation decreased to 0.9% from 1.1%.
Prices for manufactured goods saw a faster decline of 0.9%, partly influenced by seasonal sales occurring more frequently in the June data collection period compared to the prior year. Conversely, tobacco prices saw a slight acceleration in their increase. The monthly Consumer Price Index (CPI) fell by 0.2%, marking the first monthly decrease in five months, largely due to lower energy prices.
The harmonized inflation rate, adjusted for comparison across the Eurozone, stood at 2% year-on-year, down from 2.8% in May, and decreased by 0.3% on a monthly basis.