| Consensus | Actual | Previous | |
|---|---|---|---|
| Month over Month | 0.1% | 0.1% | 0.1% |
| Year over Year | 2.1% | 2.2% | 2.1% |
| HICP - M/M | 0.1% | 0.2% | 0.1% |
| HICP - Y/Y | 2.5% | 2.5% | 2.5% |
Highlights
The consumer price index saw a slight uptick in June of 0.1 percent from May, unrevised from the preliminary estimate and reflecting a balance between rising service prices and stable manufactured product prices, against declining energy and food prices. Tobacco prices remained unchanged. Seasonally adjusted, the consumer price index stayed stable, mirroring May's trend.
Year-over-year, the consumer price index rose by 2.2 percent, up from 2.1 percent in the initial estimate for June but down from 2.3 percent in May, driven by a slowdown in energy of 4.8 percent and food prices of 0.8 percent. Services saw a marginal increase of 2.9 percent, while manufactured products and tobacco maintained their rates. Core inflation increased to 1.8 percent from 1.7 percent, indicating underlying inflationary pressures. The harmonised index of consumer prices mirrored these trends, with a monthly increase of 0.2 percent and a yearly rise of 2.5 percent.
The latest consumer price index data indicates that inflationary pressures in France are stabilizing, with only a marginal monthly increase of 0.1 percent. This stability and a slight decrease in year-over-year inflation from 2.3 percent in May to 2.2 percent in June suggests a potential easing of cost-of-living rise for consumers. This may relieve some cost burdens on households and businesses, supporting consumer spending and economic stability.
Year-over-year, the consumer price index rose by 2.2 percent, up from 2.1 percent in the initial estimate for June but down from 2.3 percent in May, driven by a slowdown in energy of 4.8 percent and food prices of 0.8 percent. Services saw a marginal increase of 2.9 percent, while manufactured products and tobacco maintained their rates. Core inflation increased to 1.8 percent from 1.7 percent, indicating underlying inflationary pressures. The harmonised index of consumer prices mirrored these trends, with a monthly increase of 0.2 percent and a yearly rise of 2.5 percent.
The latest consumer price index data indicates that inflationary pressures in France are stabilizing, with only a marginal monthly increase of 0.1 percent. This stability and a slight decrease in year-over-year inflation from 2.3 percent in May to 2.2 percent in June suggests a potential easing of cost-of-living rise for consumers. This may relieve some cost burdens on households and businesses, supporting consumer spending and economic stability.
Market Consensus Before Announcement
No revisions are expected to the provisional data.
Definition
The consumer price index (CPI) is a measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly and annual changes in the CPI represent the main rates of inflation. The national CPI is released alongside the HICP, Eurostat's harmonized measure of consumer prices. A flash estimate was released for the first time in January 2016 and is now published towards the end of each reference month.
Description
The consumer price index is the most widely followed indicator of inflation. An investor who understands how inflation influences the markets will benefit over those investors that do not understand the impact. In countries where monetary policy decisions rest on the central bank's inflation target, the rate of inflation directly affects all interest rates charged to business and the consumer. As a member of the European Monetary Union, France's interest rates are set by the European Central Bank.
France like other EMU countries has both a national CPI and a harmonized index of consumer prices (HICP). The HICP is calculated to give a comparable inflation measure for the EMU. Components and weights within the national CPI vary from other countries, reflecting national idiosyncrasies.
Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how indicators such as the CPI influence the markets - and your investments. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion.
By tracking inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform. Over the long run, the bond market will rally (fall) when increases in the CPI are small (large). The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.
France like other EMU countries has both a national CPI and a harmonized index of consumer prices (HICP). The HICP is calculated to give a comparable inflation measure for the EMU. Components and weights within the national CPI vary from other countries, reflecting national idiosyncrasies.
Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how indicators such as the CPI influence the markets - and your investments. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion.
By tracking inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform. Over the long run, the bond market will rally (fall) when increases in the CPI are small (large). The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.
