Consumer prices rose in August, but less rapidly than the previous month. According to provisional data published Wednesday, August 31 by INSEE, inflation now stands at 5.8% over one year, against 6.1% in July. This is the first slowdown in consumer price inflation in France year-on-year since July 2021, when inflation was limited to 1.2%. Between November and December 2021, prices had risen at the same rate, at 2.8% over one year.
This drop in inflation is due “to the slowdown in energy prices”, explains the National Institute of Statistics in a press release. On the other hand, the rise in the prices of manufactured goods and food accelerated and that of the prices of services progressed at the same rate as in July, according to the institute. Over one month, however, the rise accelerated with consumer prices rising by 0.4% between July and August, against 0.3% between June and July.
In August, food prices increased by 7.7%. The increase was more contained (+3%) for fresh products than for other food products. Energy prices jumped 22.2%, but this is less than in July, when the increase reached 28.5%. The prices of manufactured products accelerated markedly, with an increase of 3.5%, against 2.7% the previous month, while services rose by 3.9% over one year, ie as much as in July.
Finally, the harmonized consumer price inflation index (HICP), which serves as a basis for comparison at European level, increased by 6.5% over one year in August, against 6.8% in July. Over one month, the HICP rose by 0.4%, against 0.3% the previous month.