Inflation: INSEE confirms that consumer prices have increased by 1% over one year

Consumer prices in France rose by 0.2% month-on-month and 1.0% year-on-year in July, INSEE confirmed on Thursday, August 14, with the publication of final results. Over the month, the increase was driven by a further rise in service prices (+1.3% after +0.6% in June), particularly in the prices of transport services (+10.2% after +3.7%) and accommodation (+11.7% after +8.4%). Energy prices rose again (+0.9% after +0.6%), particularly those of petroleum products (+1.5% after +1.9%).

On the other hand, manufactured goods prices fell (-2.4% after +0.1%) due to sales. Food prices were stable, as were tobacco prices. Seasonally adjusted consumer prices also increased by 0.2% after +0.4% in June.

Over twelve months, explains the National Institute of Statistics, the 1% increase is due to slight accelerations in the prices of services (+2.5% after +2.4%) and food (+1.6% after +1.4%), offset by the more significant drop in those of energy (-7.2% after -6.7%). The prices of manufactured goods are evolving as in June (-0.2%). Core inflation (excluding the most volatile prices) is up, at 1.5% over one year after 1.2% in June. The Harmonized Index of Consumer Prices (HICP), which allows comparisons between European countries, increased by 0.3% over one month, after +0.4% in June. Over one year, it increased by 0.9%, as in June.

The good news is that France is resisting rising prices better than the eurozone average, where inflation remained stable in July and stood at 2% year-on-year, according to data published in early August by the European Statistics Office. After reaching record levels (10.6% in October 2022) in the wake of the Covid-19 pandemic and the war in Ukraine, the pace of consumer price increases is in line with the European Central Bank's targets. Concerns are now focused on the bloc's weak economic growth. This is all the more so with the entry into force at the beginning of August of Donald Trump's customs duties, which are giving Europeans cold sweats.