French inflation falls again, energy and food price increases slow

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– French inflation starts to fall again in June.

French inflation falls again. The consumer price index rose by 2.1% over one year in France in June, down slightly after 2.3% in May, INSEE indicated this Friday June 28 in a press release. Inflation thus resumes its slow decline after a slight bump in May, where it increased by 0.1 point compared to the month of April (2.2% over one year). In June 2023, it still reached 4.5%.

The decline observed in June can be explained both by a “slow-down” of the increase in energy and food prices, and an evolution at the same pace as in May in the prices of tobacco, manufactured products and services, details the National Institute of Statistics and Economic Studies in this first estimate (Insee) which must be confirmed in mid-July.

L’inflation “almost stable” over one month

The cost of food has risen 0.8% over one year in June, compared to 1.3% in May; that of energy, for its part, grew by 4,8%, while it still increased by 5.7% a month earlier. The price of services – a component which weighs more than half of the consumer price index – appreciated by 2.8% year-on-year in June, a figure identical to that of May. The price of tobacco increased by 8.7% as in May while that of manufactured products remained flat (0%).

Over a month, inflation is «quasi stable» since it was 0.1% between May and June after being zero between April and May, specifies the Insee. A reference indicator at European level, the harmonized consumer price index (HICP) increased by 2,5% year-on-year in June, after an increase of 2.6% in May.