Inflation reached 5.9% over one year in France in August, INSEE said on Thursday, September 15, revising up by 0.1 point its first estimate published at the end of August. .
“Taking into account the latest price readings at the end of the month results in a less marked slowdown in energy prices and a more sustained acceleration in food prices”details the National Institute of Statistics in a press release.
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The change in the harmonized index, which serves as a basis for comparison at European level, was also corrected by INSEE (+0.1 point compared to the first estimate, to reach 6.6% over one year in august). Despite these revisions, the fall in the consumer price index in August compared to July (6.1% over one year) is confirmed.
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Rising food prices
“This slight drop in inflation is the result of the slowdown in energy prices (+22.7% over one year in August after +28.5% in July), particularly those of petroleum products (+28.7% after + 39.0%)”explains INSEE.
In contrast, “those of food accelerated (+7.9% after +6.8%) as well as those of manufactured products (+3.5% after +2.7%)”.
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Among food products, the rise in prices for fresh fruit, meat, dairy products, bread and beverages accelerated particularly compared to July. Fresh vegetables and fish, on the other hand, experienced a slower increase in their selling prices in August than in the previous month.
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No improvement expected in 2023
The government recently raised its inflation forecast for the year 2022, to 5.3% against 5% expected so far.
For 2023, the executive expects inflation to remain high (4.2%) and well above the 2% target set by the Central Bank as part of its price stability mission.
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On Tuesday, the Minister of the Economy Bruno Le Maire stressed that the gradual withdrawal of support systems (fuel discount, increase in gas and electricity prices by 15% on 1er January 2023) would result in inflation “high” in “December, January, February 2023”.
“We do not expect any improvement on the inflation front before sometime in 2023”he recalled.
