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The Consumer Prices Index decreased in July 2014 by 0.3% ; it rose by 0.5%, year-on-year

Prices index – July 2014

Monthly change: —0.3%; Year-on-year: +0.5%

In July 2014, the Consumer Prices Index (CPI) decreased by 0.3% after it remained almost unchanged during the last three months. It grew by 0.5% in the year to July 2014, as in June 2014, after +0.7% in April and May 2014. Excluding tobacco, the CPI rose by 0.4% in the year to July 2014.

This decrease in July 2014 came, mainly, from some seasonal variations of prices, especially the downward contributions of summer sales to the manufactured product prices and those of an abundant supply to the large decline in fresh foodstuff prices. In contrast, service prices rose seasonally at the time of the summer holidays. Moreover, enregy prices were up in July 2014 due to a slight rebound in motor fuel prices.

Seasonal increase in the price of services

Service prices were up seasonally in July as each year at the time of the summer holidays. Thus, they overall increased by 1.1% in July 2014 (as in July 2013; +1.8% year-on-year). The largest contributions to this substantial rise came from the sharp increase in the prices of catering and accomodation services (+2.3% in July 2014 compared to June 2014; +3.0% year-on-year), from airfares (+14.0%; —0.3% year-on-year), from rentals of holiday homes (+25.6%; +0.4% year-on-year) and from package holidays (+17.5%; +0.2% year-on-year). Conversely, the prices of Passenger transports by railway decreased by 1.3% as the result of the partial repayment of annual subscriptions in July 2014. Furthermore, the prices of mobile phone services were overall steady (+1.0 % year-on-year) while actual rentals for housing slowed down (+1.0% year-on-year in July 2014 after +1.1% in June 2014).

Detailed figures for various groups
base 100 : année 1998
Source : Insee - Consumer Price Indexes
Percentage change
Items Weight 2014 Index July 2014 Month rate Annual rate
a) All households - France
All items (00 E) 10000 127.73 -0.3 0.5
All items SA (00 C) 10000 127.99 0.2 0.5
Food (4000 E) 1653 131.46 -0.5 -1.4
Fresh food (4001 E) 210 135.61 -3.6 -9.0
Food excluding fresh products (4002 E) 1443 130.83 -0.1 -0.2
Tobacco (4034 E) 204 258.59 0.0 5.0
MANUFACTURED PRODUCTS (4003 E) 2653 97.77 -2.9 -1.3
Clothing and footwear (4004 E) 438 95.43 -13.4 -1.8
Medical products (4005 E) 434 78.15 -0.3 -3.0
Other manufactured products (4006 E) 1781 103.07 -0.9 -0.8
ENERGY (4007 E) 850 178.65 0.1 0.7
Petroleum products (4008 E) 475 202.72 0.2 -1.5
SERVICES (4009 E) 4640 137.54 1.1 1.8
Actual rentals and services for dwellings (4010 E) 748 141.59 0.1 1.4
Medical services (4011 E) 552 122.71 0.2 0.3
Transport and communication services (4012 E) 503 98.83 2.6 1.5
Other services (4013 E) 2837 148.69 1.2 2.2
ALL ITEMS EXCLUDING RENTALS AND TOBACCO (5000 E) 9202 125.15 -0.4 0.3
ALL ITEMS EXCLUDING TOBACCO (4018 E) 9796 125.81 -0.3 0.4
b) Manual or clerical worker headed urban households - France
ALL ITEMS EXCLUDING TOBACCO (4018 D) 9707 125.62 -0.3 0.3
ALL ITEMS (00 D) 10000 128.42 -0.3 0.5
c) Households that belong to the lowest equivalized disposable income quintile - France
ALL ITEMS EXCLUDING TOBACCO (4018 Q) 9679 127.03 -0.2 0.3
Detailed figures for Core inflation* and HICP**
* ISJ : Core inflation indicator excludes public sector prices, the most volatile consumer prices and the tax measures. Seasonnaly adjusted, this index is calculated for all households in France excluding overseas departments and territories (base 100 1998).
**HICP : Harmonised Indices of Consumer Prices are inflation figures designed for international comparison of consumer price inflation between Member states of the Union. This index is computed for all households in France (base 100 2005).
Source : Insee - Consumer Price Indexes
Percentage change
Items Weight 2014 Index July 2014 Month rate Annual rate
All items "Core inflation" (4022 S) 6053 122.51 0.2 0.1
Food excluding fresh products, meat, milk and exotic products (4019 S) 713 124.75 -0.3 -1.0
Manufactured products (4020 S) 2162 103.92 -0.5 -1.3
Services including actual rentals and services for dwellings (4021 S) 3178 139.73 0.4 1.2
All items HICP (00 H) 115.42 -0.4 0.6

Consumer price index (IPC) and Core inflation (ISJ) – year-on-year changes

Consumer price index (IPC) and Core inflation (ISJ) – year-on-year changes

Source : Insee - Consumer Price Indexes

Seasonal decrease in manufactured product prices

Prices of manufactured products fell seasonally in July mainly due to summer sales (—2.9% in July 2014 after —2.8% in July 2013; —1.3% year-on-year). This large decrease in prices came especially from : clothing and footwear (—13.4%; —1.8% year-on-year), travel goods and other carriers of personal effects (6.3%; —1.0% year-on-year), furniture and furnishnigs (—3.4%; +0.4% year-on-year), household textiles (—2.9%; —1.3% year-on-year) as well as from jewellery, clocks and watches (—2.0%; —2.3% year-on-year). The summer sales also contributed to the downward trends in prices of the audio-visual, photographic and information processing equipments (—1.4%; —7.2% year-on-year).

Large decrease in food prices

In July 2014, food prices decreased by 0.5% compared to June 2014 (—1.4% year-on-year), mostly due to the seasonal decline in the prices of fresh foodstuffs (—3.6%). As weather conditions at the beginning of the year were better this year than last year, their prices fell also in July 2014 compared with the same month one year ago (—9.0%). Excluding unprocessed products, food prices diminished by 0.1% in July 2014 (as in June 2014) and by 0.2% year-on-year. The decrease in prices was substantial compared to July 2013 for some consumption items : —6.1% for homogenized baby food and dietary preparations, —2.3% for non alcoholic beverages and —2.2% for sugar, jam, honey, chocolate and confectionery.

Slight increase in energy prices

Energy prices increased in July 2014 (+0.1% ; +0.7% year-on-year) due to a slight rise in the prices of petroleum products (+0.2% after +0.3% in June 2014; —1.5% year-on-year), only due to motor fuel prices (+0.3%; —1.3% year-on-on-year) while the prices of heating fuels decreased in July 2014 (—0.4%; —3.2% year-on-year). Moreover, the price of city gas declined again in July 2014 (—0.4% ; —2.3% year-on-year). Electricity prices were unchanged (+6.9% compared with the same month one year ago).

Core inflation remained weak

In July 2014, the core inflation indicator (ISJ) increased by 0.2% compared to June 2014 and by 0.1% compared to July 2013. The Harmonized Index of Consumer Prices (HICP) decreased by 0.4% in July 2014 ; its annual rate of change stood at +0.6% in July 2014, as in June 2014.

Informations Rapides

n° 184 - August 13, 2014

Consumer price index - July 2014

Next issue September 11, 2014 08:45 - August 2014

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