Inflation in France slowed down in August to 0.2% over one year, after 0.8% in July, INSEE reported on Friday according to provisional figures, also pointing out that July had seen spending household consumption to stabilize.
In August, the slowdown in the rise in consumer prices is explained by a fall in the prices of manufactured products, "in connection with the delay in the summer sales", and also by a slowdown in those of food. , detailed the Institute of Statistics.
“On the other hand, energy prices would fall less over one year than in July. Finally, the prices of services and tobacco would increase at the same rate as the previous month, ”said INSEE.
After a sharp acceleration in inflation in July
In July, inflation had accelerated sharply (+ 0.8%) compared to June, a month in which prices only increased by 0.2% over one year, and by 0.1% over one month .
Over one month, consumer prices “would decline by 0.1%, after + 0.4% the previous month. The prices of manufactured products should fall sharply, following stability in July. Those of energy and services would slow down and those of tobacco would be stable, ”according to INSEE. The institute also noted that food prices "would rebound slightly in the wake of fresh produce prices, after a sharp drop in the previous month."
Over one year, the harmonized consumer price index should slow down to + 0.2%, after + 0.9% in July. Over one month, it should fall back 0.1%, after + 0.4% the previous month.
Household spending stabilized this summer
INSEE also took stock of household consumption expenditure on Friday: it stabilized in July (+ 0.5%) after having jumped in May and June on leaving confinement (+ 35.5% and + 10.3% respectively). Household consumption thus returns "almost" to its level of November 2019, summarized the institute.
In detail, energy expenditure increased quite clearly compared to June (+ 4.5%): "in particular, fuel consumption increased again sharply (+ 9.1% compared to June)", forward INSEE. Clothing-textile spending increased again (+ 1.3%), in particular thanks to purchases of clothing and footwear. For its part, the consumption of manufactured goods slows down sharply after returning to its usual level in June (+ 0.3%) and food consumption is decreasing (-1.0%).
Society
The back-to-school allowance, revalued by 100 euros, paid on Tuesday
Economy
Coronavirus: Deconfinement will also weigh on French growth
- Confinement
- Inflation
- Household consumption
- INSEE
- Consumption
- Economy