- Consumer prices increased by 1% over a year in June, INSEE announced this Friday, July 11.
- This increase is mainly carried by the prices of services and energy.
Inflation continued its slight ascent last month. Consumer prices increased by 1% in June over a year, driven by the services, indicates this Friday, July 11, the INSEE, which thus revises 0.1 points up its provisional estimate at the end of June.
Over a month, prices increased by 0.4% in June, after a decline of 0.1% in May. Again, the final result is 0.1 point higher than the provisional result. Last month, the prices of the services rebounded by 0.6% compared to May, after a decline of 0.2%, due to a price increase in accommodation services (+8.4% after+3.2%) and transport (+3.7% after -5.2%).
Food price stability
Energy prices also rebounded (+0.6% after -1.4%), particularly because of petroleum products (+1.9% after -1.7%). Food prices are almost stable (-0.1% after +0.5%), like those in manufactured products ( +0.1% as in May). The corrected prices of seasonal variations also increase by 0.4%, after stability in May.
Over one year, the 1% increase in prices, after +0.7% in May, is particularly explained by accelerating services prices ( +2.4% after +2.1%) and a lower drop in energy prices (-6.7% after -8.0%). Food prices accelerate again ( +1.4% after +1.3%), but those from tobacco slow down a little ( +4.0% after +4.1%). The prices of manufactured products fell 0.2% over a year, as in May. The underlying inflation, which does not take into account the most volatile prices, is 1.2% over one year after 1.1% in May.
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Finally, the harmonized consumer price index (IPCH), which allows comparisons with other European countries, increases by 0.4% over a month, after -0.2% in May, and by 0.9% over one year (revised up 0.1 points) after +0.6% in May. The very clear slowdown in prices, in France and throughout the euro zone, has enabled the European Central Bank (ECB) to lower its rates in June 8ᵉ times in a year, passing the deposit rate to 2%.
