11 July 2019

2019- n° 180

In June 2019, consumer prices rose by 0.2% over one month and by 1.2% year on year Consumer price index - final results - June 2019

In June 2019, the Consumer Prices Index (CPI) rose by 0.2% over a month, after +0.1% in May 2019. This increase, barely stronger than in the previous month, came from a rebound, over a month, in services prices (+0.5% after −0.2%), partly offset by a slight downturn in energy prices (−0.1% after +0.6%) and a slowdown in those of food (+0.1% after +0.7%). The prices of manufactured products were stable over a month, after +0.2% in May. Similarly, tobacco prices were unchanged in June after +0.3% in the previous month.

Seasonally adjusted, consumer prices rebounded to +0.3% over a month, after −0.1% in May.

Year on year, consumer prices gathered pace in June to +1.2% after +0.9% in May 2019. This rise in inflation resulted from a strong acceleration in services prices and, to a lesser extent, in those of food. Contrariwise, energy prices sharply slowed down. Those of manufactured products dropped by 0.7%, as in the previous month. Finally, tobacco prices rose by 9.0% year on year after +9.1% in May.

Year on year, core inflation rose by 0.9%, after +0.5% in May. The Harmonised Index of Consumer Prices (HICP) accelerated, over a month, to +0.3% in June, after +0.1% in May; year on year, it grew by 1.4%, after +1.1% in the previous month.

In June 2019, services prices were sharply more dynamic than in May: +1.2% year on year after +0.6% in the previous month. Transport prices strongly rebounded to +1.5% year on year after −1.5% in the previous month, in the wake of airfares (+2.4% after −2.5%). The prices of housing-related services rose by 0.7% year on year after −0.2% in May, due to a drop, in June 2018, in social rental prices concurrent with these in individual housing benefits. The prices of "other services" gathered pace (+1.7% year on year after +1.5%). Those of communication services (−1.1% after −3.4%) and health services (−0.2% year on year after −0.4%) fell less than in May.

In June 2019, food prices rose by 2.6% year on year, after +2.3% in May 2019. Those in fresh products increased sharply stronger than in the previous month (+3.7% year on year after +2.3% in May), due to a marked acceleration in the prices of fresh vegetables (+6.9% after +2.5%). Excluding fresh products, food prices rose at the same pace as in the two previous months (+2.3% year on year).

Energy inflation decreased in June 2019 for the third consecutive month (+2.4% year on year after +3.4% in May). The downturn in petroleum products prices (−1.3% year on year after +3.4%) and a slowdown in gas prices (+10.5% after +13.1%) were partly offset by a sharp rebound in electricity prices (+5.6% after −0.3%).

Year on year, manufactured product prices dropped by 0.7% in June, as in May. The prices of clothing and footwear decreased more than in the previous month (−0.9% year on year after −0.7%). Similarly, the drop in health products prices was accentuated (−3.1% after −2.8%). The prices of “other manufactured products” were stable year on year, after a 0.1% drop in the three previous months. The prices of furniture and furnishings rebounded (+0.3% year on year after +0.9%) and those of gardens, plants and flowers (+0.6% after +1.4%) slowed down. The prices of equipment of sport dropped more (−1.3% after −0.7%). Contrariwise, those of cars accelerated (+1.2% after +0.9%) and the drop of telephone equipment was attenuated (−10.3% after −11.8%).

Compared with the provisional estimates published on June 28, 2019, the month-on-month and year-on-year changes in the CPI and in the HICP were confirmed.