Prices increased by 1.8% in France from August 2023 to August 2024, the National Institute of Statistics and Economic Studies (INSEE) noted on Friday, September 13. INSEE confirms the return of inflation below the symbolic threshold of 2%, for the first time in three years, and even slightly lowers its first estimate (1.9%).
In its press release, the institute notes that after reaching 2.3% over one year in July, the progression of the consumer price index moderated in August due to a “very clear slowdown in energy prices”.
The indicator had not fallen below 2% since August 2021 in France, the inflation target pursued by the European Central Bank (ECB), which on Thursday made a new rate cut due to the calming of price increases.
However, over one month, inflation stood at 0.5%, marking an acceleration compared to July (+0.2%). Core inflation, an indicator that excludes from its scope the products with the most unstable prices, was also more dynamic: it reached 1.7% over one year in August, or 0.2 points more than in July (+1.5%).
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Tobacco prices jumped 8.7%
Various data from the press release allow us to understand the increase in prices in more detail. For example, energy prices increased slightly in August, by 0.4% over one year (compared to +8.5% in August 2023), and food prices increased at the same rate (+0.5%, as in August 2023).
The harmonised index of consumer prices (HICP), which is a European reference, rose by 2.2% over a year, a sharp decline compared to the previous month when it was still at 2.7%.
The cost of petroleum products fell by 8% over one year, those of electricity (+10.5%) increased almost half as quickly as a year earlier and those of gas also slowed down, more moderately (+9.4% over one year in August, against +11.4% in August 2023).
Other figures show that tobacco prices jumped by 8.7%, a rate identical to that recorded a year earlier, or that the cost of services increased by 3% over a year in August, whereas it had only increased by 2.6% in July.
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