France's consumer prices show minimal increase in June 2024

In June 2024, France's consumer price index (CPI) experienced a modest rise of 0.1 per cent over one month, following a period of no change in May, according to the data released by the National Institute of Statistics and Economic Studies (Insee). The prices of clothing and footwear rose by 0.4 per cent month-on-month (MoM).

This near stability in overall prices was driven by a rise in manufactured product prices, which went up by 0.1 per cent, mirroring the increase seen in the previous month. However, this rise was significantly offset by a decline in energy prices, which fell by 0.8 per cent after a 1.2 per cent decrease in May.

On a year-on-year (YoY) basis, consumer prices in June 2024 saw an increase of 2.2 per cent, slightly down from the 2.3 per cent increase recorded in May. This marginal decrease in inflation is attributed to a slowdown in the YoY rise in energy prices, which grew by 4.8 per cent in June compared to a 5.7 per cent increase in May, as per Insee.

The prices of manufactured products remained stable YoY in June 2024, consistent with the trend observed in May. Similarly, the prices of clothing and footwear maintained their growth rate of 0.6 per cent YoY, unchanged from May.

Core inflation, which excludes volatile items such as energy and food, saw a slight increase, reaching 1.8 per cent in June 2024, up from 1.7 per cent in May. Meanwhile, the harmonised index of consumer prices (HICP), which is used for European comparisons, rose by 0.2 per cent MoM in June, following a 0.1 per cent increase in May. On a YoY basis, the HICP went up by 2.5 per cent in June, slightly lower than the 2.6 per cent rise recorded in May.

Fibre2Fashion News Desk (DP)