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France’s inflation at 4-month high

France’s inflation at 4-month high

PARIS: France’s inflation accelerated to a four-month high in August, provisional estimate from the statistical office Insee showed Thursday. Consumer price inflation rose to 0.9 percent in August, in line with expectations, from 0.7 percent in July. This was the highest rate since April, when inflation was 1.2 percent. The annual increase in inflation resulted from a sharp acceleration in energy prices and a slightly faster growth in services prices.

Month-on-month, consumer prices climbed 0.5 percent after falling 0.3 percent in July. Monthly inflation also matched economists’ expectations. Inflation, based on the harmonized index of consumer prices, increased to 1 percent from 0.8 percent in July. On a monthly basis, the HICP rebounded 0.6 percent, following July’s 0.4 percent drop. Both monthly and annual figures came in line with forecast. Final data is due on September 14.

In a separate communique, Insee said producer prices in the domestic market edged up 0.1 percent month-on-month in July, in contrast to a 0.3 percent drop in June. On a yearly basis, prices advanced 1.5 percent. Producer prices in the French market and foreign markets remained almost stable in July after five consecutive months of decrease. Year-on-year, producer prices climbed 1.5 percent, slightly slower than June’s 1.6 percent increase.