| Actual | Previous | |
| Month over Month | 0.4% | 0.2% |
| Year over Year | 0.9% | 1.0% |
| HICP - M/M | 0.5% | 0.3% |
| HICP - Y/Y | 0.8% | 0.9% |
Highlights
Consumer prices are expected to increase 0.4 percent in August from 0.2 percent in July, and post a 0.9 percent gain year-over-year, slowing from 1.0 percent in July, according to preliminary results released today.
Prices for services slowed further, increasing 2.1 percent in August, year-over-year, after 2.5 percent in July and 3.0 percent in June, mainly due to lower transportation costs. Food price inflation is expected to hold steady at 1.6 percent in August, although French consumers can expect fresh food prices to increase 1.7 percent from last August after a 1.6 percent gain in July.
Energy prices are expected to fall 6.2 percent compared to August of last year after a 7.2 percent slowdown in July.
The HICP used to compare inflation between European economies is seen slowing to 0.8 percent, year-on-year in August from 0.9 percent in July, while increasing 0.5 percent from July when prices rose 0.3 percent.
Looking solely at the August results, the level of inflation is not worrying. Even so, August is the first month of data in which the US tariffs took effect, and today’s data could be the start of prices starting to move broadly higher.