2023-07-28 11:01:14
Posted Jul 28, 2023 at 9:48 a.m.Updated Jul 28, 2023 at 11:01 a.m.
The good news is linked for the French economy this Friday morning. After growth, which rebounded much more than expected with a GDP up 0.5% in the second quarter, inflation continued to decelerate.
In July, price increases slowed again, to 4.3% over one year, according to the provisional estimate published by INSEE on Friday. It is thus down, after 4.5% in June and 5.1% in May. Over one month, consumer prices remained stable in July, according to INSEE, while they were still up 0.2% in June.
Increase in services
Everything, or almost, contributed to the ebb of inflation in France this month. Thanks to the decline in gas prices, energy made a negative contribution for the second consecutive month. In the food departments, prices are still soaring (+12.6%). But an encouraging sign, the outbreak is slowing down for the fourth consecutive month (+13.7% in June and +14.3% in May).
The rise in the prices of manufactured products also slowed down (+3.4%) under the effect of the sales in the clothing sector.
Only services remain on the dynamics of past months, with prices still increasing by 3% over one year.
Rise in electricity prices
At 4.3%, inflation in France is lower than that expected at the end of the year by INSEE (4.4%). In its economic report for the month of June, the Institute of Statistics predicts that the rate of price increases in the food departments will be halved compared to 2022 at the end of the year, to 7.4%.
Its forecasts, on the other hand, could not integrate the government’s surprise announcement concerning the tariff shield on electricity prices. From August 1, regulated electricity prices will increase by 10%. This measure will concern both households and very small businesses (TPE). The impact was assessed at around 0.2 inflation point in August by INSEE.
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