• French CPI up 0.5% in August, as expected

Market news

31 August 2017

French CPI up 0.5% in August, as expected

Over a year, the Consumer Price Index (CPI) should increase by 0.9% in August 2017, after +0.7% in the previous month, according to the provisional estimate made at the end of the month. This rise in year-on-year inflation should result from a sharp acceleration in energy prices and a slightly faster growth, in services prices. On the other hand, food prices are set to slow down slightly and manufactured product prices should fall more sharply than in the previous month.

Over one month, consumer prices should recover sharply (+0.5% after -0,3% in July). This increase should mainly be due to a seasonal rebound in manufactured product prices after the summer sales in the metropolitan area, and a seasonal momentum, in the prices of some tourism-related services. Energy prices should pick up strongly, due to the annual revision in electricity fees and a rebound in petroleum product prices. Food prices are set to be stable after a slight rise in the previous month.

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