Inflation drops below 5% in France for the first time in over a year and stands at 4.5% in June, according to INSEE

Price increases slowed in France for the second month in a row, standing at 4.5% over one year in June, INSEE announced in a first estimate published on Friday June 30. Inflation was 5.9% in April and 5.1% in May. For the first time since April 2022, the indicator therefore falls below 5%.

This is due to a slowdown in the rise in food prices, which reached 13.6% over one year in June, against 14.3% the previous month, details the National Institute of Statistics and Economic Studies. “Food prices (especially excluding fresh produce) slowed for the third month in a row”notes INSEE.

This slowdown in inflation is also explained by a 3% decline over one year in energy prices. “Service prices are rising at a close pace” that of May, up 2.9% in June against 3% the previous month, specifies INSEE. “Those of manufactured goods are accelerating slightly due to the later start of the summer sales”, which started on Wednesday 28 June. The increase in this last indicator is 4.3% over one year in June, against 4.1% in May, according to the INSEE estimate.