September 11, 2014

Consumer prices in August rose 0.4% over the previous month, which contrasted the 0.3% fall recorded in July. The print was in line with market expectations. As the National Statistics Institute (INSEE) reported, August’s increase mainly reflected higher prices for package holidays due to the holiday season.



Annual inflation inched down from July’s 0.5% to 0.4% August, which continued to mark the lowest level since November 2009. The core inflation index, which excludes more volatile items such as oil, fruit and vegetables, rose 0.3% month-on-month in August, which was up from the 0.2% increase tallied in July. Annual core inflation jumped from 0.1% in July to 0.4% in August.



Annual HICP inflation in August (based on the harmonized index of consumer prices) edged down from July’s 0.6% to 0.5% in August. Annual average HICP inflation stabilized at July’s 0.8% in August.

FocusEconomics Consensus Forecast panelists expect HICP inflation to average 0.9% in 2014, which is unchanged from last month’s forecast. For 2015, panelists project that inflation will accelerate to 1.1%.