Prices rose by 1.8% in France between August 2023 and August 2024, the National Institute of Statistics and Economic Studies (INSEE) said on Friday, September 13. INSEE confirmed the return of inflation below the symbolic threshold of 2% for the first time in three years, and even slightly lowered its first estimate (1.9%).
In its statement, the institute points out that, after reaching 2.3% year-on-year in July, the progression of the consumer price index slowed in August due to a “Very clear slowdown in energy prices”.
The indicator had not fallen below 2% since August 2021 in France, the inflation target pursued by the European Central Bank (ECB), which carried out a new rate cut on Thursday due to the easing of price increases.
However, inflation in one month was 0.5%, which is an acceleration compared to July (+0.2%). Core inflation, an indicator that excludes products with more unstable prices, was also more dynamic: it reached 1.7% year-on-year in August, or 0.2 points higher than in July (+1.5%).
Tobacco prices rose by 8.7%
Several data in the press release provide a more detailed understanding of the price increase. For example, energy prices rose slightly in August, by 0.4% year-on-year (compared to +8.5% in August 2023), and food prices rose at the same pace (+0.5%, as in August 2023).
The Harmonised Index of Consumer Prices (HICP), which refers to Europe-wide, rose by 2.2% over the year, a sharp decline compared to the previous month, when it was still at 2.7%.
Oil product costs fell by 8% over the year, electricity costs (+10.5%) rose by almost half compared to a year earlier and gas costs also slowed, more moderately (+9.4% over the year in August, compared to +11.4% in August 2023).
Other figures show that tobacco prices rose by 8.7%, the same rate as the year before, and that the cost of services rose by 3% year-on-year in August, compared with 2.6% in July.
