June final CPI +1.8% vs +1.8% y/y prelimPrior +2.4%June final HICP +2.0% vs +2.0% y/y prelimPrior +2.8%
French headline annual inflation is confirmed at 1.8% in June, marking a drop from 2.4% in May. The decline in price pressures owes much to a sharp slowdown in energy prices, with that recording +11.1% in June as compared to +16.6% in May. Even on the monthly figure, headline inflation fell by 0.3% with energy prices seeing a sharp downturn (-4.2% in June after +0.6% in May).
That being said, core annual inflation also experienced a sharp drop in June as it falls to 1.0%. That is down from the 1.5% estimate in May. The sharp decline in core prices stemmed primarily from the slowdown in air transport prices and cyclical price decreases in clothing, insurance, and bundled telecommunication services. The breakdown shows food price inflation also slowing to 0.9% (previously 1.1%) with services inflation also dropping further to 1.9% (previously 2.1%).
This just serves to reinforce the ECB policy stance of keeping on pause ahead of the summer break. Carry on as you will.
This article was written by fl9bde53b91e184082bbe3aa3acaaf2cb0 at investinglive.com.