August 16, 2022

Monthly change: +0.3% in July; year-on-year change: +6.1%

In July 2022, the Consumer Price Index (CPI) in France rose by 0.3% over one month, after +0.7% in June. The prices of services accelerated (+1.3% after +0.3%), linked with the prices of “other services” (+1.4% after +0.2%), notably accommodation services (+16.4% after +4.6%), and with those of transport services (+11.7% after +3.4%). The prices of food also accelerated, to a lesser extend (+1.0% after +0.8%). Those of manufactured goods decreased (-1.6% after +0.0%), mostly because of the summer sales, as those of energy (-1.3% after +5.2%).

Seasonally adjusted, consumer prices rose by 0.4% after +0.8% in June.

Year on year, consumer prices grew by 6.1% after +5.8% in June. This increase in inflation resulted from the acceleration of service (+3.9% after +3.3%), food (+6.8% after +5.8%) and, to a lesser extent, manufactured goods prices (+2.7% after +2.5%). The prices of energy slowed down slightly (+28.5% after +33.1%).

Acceleration in core inflation year on year

Year on year, core inflation grew by 4.3% in July, after +3.7% in June, due to a monthly increase of 0.8%. The Harmonised Index of Consumer Prices (HICP) rose by 0.3% over one month, after +0.9% in the previous month; year-on-year, it increased by 6.8% after +6.5% in June.

Acceleration in service prices year on year

Year on year, service prices rose by 3.9% in July, after +3.3% in June. The prices of transport services accelerated (+17.4% after +13.1%): the sharp increase in the airfares prices (+46.5% after +26.5%) has not been balanced by the slowdown of those of the railway (+11.1% after +13.2%) and transport by road (+9.7% after +10.8%). The prices of “other services” also accelerated (+4.7% after +4.0%), notably due to the increase in the prices of accommodation services (+14.7% after +9.5%), catering services (+4.5% after +4.2%) and maintenance and repair of personal transport equipment services (+6.5% after +6.0%). The year-on-year prices of communication services were slightly higher in July than in June (+0.7% after +0.3%), and the year-on-year inflation in health services was stable (+0.1%). Finally, the prices of housing-related services slowed down (+1.8% after +2.2%).

Acceleration in food prices year on year

Year on year, food prices increased by 6.8% in July, after +5.8% in June. The increase in fresh food is a bit less brisk than in the previous month (+5.2% after +6.6%): the prices of fresh vegetable (+4.9% after +7.3%), fresh fish (+17.2% after +18.3%) and fresh fruits (+2.7% after +2.9%) slowed down. Excluding fresh products, the food prices sharply increased (+7.1% after +5.7%), linked with the prices of meat (+8.8% after +7.2%) notably poultry (+14.6% after +12.1%), milk, cheese and eggs (+8.0% after +5.9%), bread and cereals (+7.6% after +6.6%), alcoholic(+3.0% after +2.4%) and non-alcoholic beverages (+6.1% after +4.8%), and oils and fats (+21.2% after +17.7%).

Slight increase in manufactured good prices year on year

Year on year, manufactured product prices increased by 2.7% in July, after +2.5% in June. This slight acceleration is due to the increase in the prices of “other manufactured goods” (+4.1% after +3.8%): those of furniture and furnishings (+7.9% after +7.4%), of non-durable household goods (+6.3% after +4.8%), of glassware, tableware and households utensils (+4.5% after +3.7%) and other appliances, articles and products for personal care (+3.3% after +2.3%) accelerated, while those of equipment for sport (+3.4% after +4.2%) and vehicles (+5.0% after +5.1%) slowed down, and those of mobile telephone equipment decreased faster than in the previous month (-4.1% after -2.3%). The year-on-year prices of clothing and footwear increased at the same rhythm in July than in June (+0.5%), as those of health products (-1.5%).

The year-on-year increase in energy prices is less sharp in July than in June

Year on year, the prices of energy slowed down in July (+28.5% after +33.1%). Due to the decrease in prices in July, the year-on-year increase in petroleum product prices is less sharp than in the previous month (+39.0% after +47.5%) in link with the prices of petrol (+25.5% after +35.9%) and diesel (+37.6% after +45.9%). The prices of gas also slowed down (+42.4% after +49.3%) and those of electricity increased (+8.2% after +7.6%).

Source: INSEE France
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