Inflation in France eased slightly to 2.1% year-on-year in June, according to provisional data published by the National Institute of Statistics and Economic Research (Insee) on Friday.
There were consumer prices increased by 2.3% year-on-year in May.
“Such a drop in inflation can be explained by the drop in food and energy prices over the course of a year.”INSEE is mentioned in the press release.
“The prices of services, manufactured goods and tobacco should grow at the same rate as the previous month within a year”The institute added.
On a monthly basis, consumer prices rose 0.1% in June after remaining flat in May. “Prices of services and manufactured products will increase slightly”to work “Energy, especially oil products and food will go into recession”, INSEE explained. The institute said that tobacco prices will be stable for a month.
The adjusted consumer price index, which allows comparisons between European Union countries, rose 2.5% year-on-year in June, after 2.6% in May. Within a month, the index increased by 0.1% in June as well as in May.
A rebound in consumption
French household consumption of goods rose 1.5% in May compared to the previous month, INSEE also showed.
This increase is explained by the increase of food consumption by 2.4% and energy consumption by 3.9% in May compared to April. The increase in electricity and gas consumption is probably explained by the fact that the temperature in May was close to seasonal norms, which coincided with several months of seasonal norms, according to a press release from INSEE.
Household consumption expenditure for April decreased by 0.9% compared to March and decreased by 0.1 percentage points.