2023-06-30 09:47:26
Inflation in France goes down a first step and falls below 5%. In June, the rise in consumer prices slowed to 4.5% over one year, down sharply after 5.1% in May according to the provisional estimate published by INSEE on Friday. A level that she had not known since March 2022.
No acceleration in services
Everything has contributed to the ebb: Thanks to the decline in the price of petroleum products, energy now has a negative contribution to inflation. Food prices, which have become the main driver of inflation in France, are also slowing down, up 13.6%, after +14.3% in May.
The surprise comes from services, which thwart economists’ expectations. While the latter were worried about an acceleration in prices, the opposite is happening: for the second month in a row, inflation has fallen back slightly to 2.9%, after 3% in May and 3 .3% in April.
As many economists predicted, inflation seems to have peaked in the first half of the year.
1.2% drop in retail sales
Over one month, consumer prices should increase by 0.2% in June 2023, after -0.1% in May. In this environment, demand continues to falter: in April 2023, sales of the whole trade in volume accentuate their decline, down 1.2% over one month (after -0.6%) “particularly marked” for fuels (-9% after +5.2%) and food (-3% after -0.6%).
At the end of the year, the rise in prices over one year would be limited to 4.4%, according to INSEE. With agricultural commodity prices falling back on international markets, the move should eventually show up on store shelves
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