After declining in May by 0.1, consumer prices are seen rising 0.3 percent in June, driven higher by increased prices for services and higher petroleum product prices, likely from the events in the middle east.

Year-on-year, prices are predicted to rise 0.9 percent from June of last year, compared with a 0.7 percent gain in May, according to preliminary estimates. Services were the main driver, rising 2.4 percent in June from a year ago after a 2.1 percent annual gain in May. A 6.9 percent drop in energy prices helped mitigate the overall increase. Food prices gained 1.4 percent in June from a year ago, up from 1.3 percent in May.

The harmonized CPI used to compare inflation among EU countries rose 0.8 percent in June from a year ago, accelerating from 0.6 percent in May. On a monthly basis, inflation is seen up 0.4 percent in June after falling 0.2 percent in May.

Energy prices have been keeping overall prices gains in check, but with volatility in the middle east, that could change rapidly.

More details will be available with the release of final figures July 11.

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.

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.