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In August 2016, consumer prices increased by 0.3% over a month and by 0.2% year-on-year

Prices index – August 2016

Monthly change: +0.3%; Year-on-year: +0.2%

In August 2016, the Consumer Prices Index (CPI) grew by 0.3% over a month, after a decrease of 0.4% in July. Seasonally adjusted, it fell by 0.1%, after a stability in July. Year-on-year, the CPI rose by 0.2%, as in the two previous months.

This month-on-month drop was largely seasonal: it arose mainly from the seasonal rebound in the manufactured product prices at the end of the summer sales in Metropolitan France and in some tourism-related services. In addition, food prices kept on rising slightly, especially due to fresh foodstuffs. These increases were partially offset by a further decline in petroleum product prices.

Rebound after the summer sales for manufactured products

Prices of manufactured products picked up after the end of 2016 summer sales. This rebound (+1.4%) was slightly less pronounced than last year (+1.6% in August 2015), after a decline also less significant in July (-2.9% versus -3.1% in July 2015). In particular, the rise in clothing and footwear prices was more limited in August 2016 (+8.7%) than in the previous year (+9.8%). Conversely, prices of other manufactured products increased slightly more this year (+0.4% versus +0.3% in August 2015). This trend was primarily due to a smaller decline in new car prices (-0.1%) compared to August 2015 (-1.9%), a period when some manufacturers had granted significant discounts. Lastly, the prices of health products continued to decrease (-0.2%; -2.7% year-on-year).

Detailed figures for various groups
2015: 100
*: seasonally adjusted
Geographical coverage: France excluding Mayotte
Source: INSEE - Consumer Price Indices
Items Weight Index Percentage change
2016 Aug. 2016 m-on-m change y-on-y change
a) All households
Overall 10000 100.58 0.3 0.2
Overall SA* 10000 100.26 -0.1 0.2
Food 1615 101.04 0.2 1.5
Fresh food 217 106.39 0.5 10.8
Other food 1398 100.20 0.1 0.1
Tobacco 195 100.17 0.0 0.1
Manufactured products 2651 98.72 1.4 -0.5
Clothing and footwear 414 96.50 8.7 -0.3
Medical products 466 96.59 -0.2 -2.7
Other manufactured products 1771 99.65 0.4 -0.1
Energy 773 96.50 -1.6 -3.0
Petroleum products 419 93.77 -3.2 -5.0
Services 4766 102.17 0.1 0.7
Actual rentals and services for dwellings 768 100.64 0.0 0.9
Medical services 598 99.85 -0.7 0.3
Transport 279 103.99 -0.9 -2.5
Communication 245 102.53 0.0 2.5
Other services 2876 102.86 0.4 1.0
Total except rents and tobacco 9183 100.61 0.4 0.2
Total except tobacco 9805 100.59 0.3 0.2
b) Urban working-class households or households of employees
All products excluding tobacco 9704 100.38 0.3 0.0
c) Households that belong to the lowest equivalized disposable income quintile - France
All products excluding tobacco 9696 100.23 0.3 -0.2

Slight seasonal rise in service prices

As every year, service prices grew slightly in August (+0.1%); year-on-year, they increased by 0.7%, their smallest rise since summer 2010. This month-on-month rise resulted chiefly from tourism-related services, as accomodation services (+5.0%; -0.1% year-on-year) and package holidays (+8.6%; +3.6% year-on-year). In contrast, airfares fell back in August 2016 (-4.8%; -5.8% year-on-year), after a surge in the previous month (+21.7%; -2.7% year-on-year). Moreover, the prices of communication services were stable in August (+2.5% year-on-year).

Slight rise in food prices

In August 2016, food prices edged up again (+0.2%; +1.5% year-on-year). Fresh food became more expensive (+0.5%; +10.8% year-on-year). Excluding fresh products, food prices went slightly up (+0.1%), after eight months of stability, as a result of higher meat prices (+0.2%; +0.3% year-on-year). Year-on-year, they barely increased: +0.1%, as in the two previous months.

Further decline in energy prices

Energy prices shrank for the second month in a row (-1.6% in August; -3.0% year-on-year), mostly as a result of falling petroleum product prices (-3.2%; -5.0% year-on-year). Furthermore, electricity fares edged down over the month (-0.3%; +1.8% year-on-year). Conversely, town gas and natural gas prices, indexed to the changes in oil prices with a time lag, rose significantly in August (+1.9%; -7.7% year-on-year)

Further decline in core inflation

In August 2016, the core inflation indicator (ISJ) was stable after a decrease by 0.1% in July. Year-on-year, it increased by 0.4%, at a slightly slower pace than in the previous month (+0.5%), reaching its lowest level since April 2015. The Harmonised Index of Consumer Prices (HICP) recovered by 0.3% over one month, as the CPI; year-on-year, it went up by 0.4%, as in the previous month.

Consumer price index (CPI), core inflation (ISJ)* and Harmonised Indices of Consumer Prices (HICP)** year-on-year changes

Consumer price index (CPI), core inflation (ISJ)* and Harmonised Indices of Consumer Prices (HICP)**  year-on-year changes
Detailed figures for Core inflation* and HICP**
2015: 100
* Core inflation indicator excludes public sector prices, the most volatile consumer prices and the tax measures. Seasonally adjusted, this index is calculated for all households in France excluding overseas departments and territories. (in French “indice d'inflation sous-jacent - ISJ)
**HICP: Harmonised Indices of Consumer Prices are inflation figures designed for international comparison between Member states of the European Union. This index is calculated for all households in France excluding Mayotte.
Source: INSEE - Consumer Price Indices
Items Weight Index Percentage change
2016 Aug. 2016 m-on-m change y-on-y change
Core inflation - All items 6075 100.63 0.0 0.4
Food excluding fresh products, meat, milk and exotic products 735 100.09 0.1 0.1
Manufactured products 2136 99.78 -0.2 -0.2
Services including actual rentals and services for dwellings 3204 101.25 0.0 0.9
HICP - All items 100.74 0.3 0.4

Revisions

Compared to the provisional estimates published on 31 August, the monthly and annual rates of change in the CPI and HICP are unchanged.

Informations Rapides

n° 237 - September 14, 2016

Consumer price index - final results - August 2016

Next issue October 12, 2016 08:45 - September 2016

See also