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In July 2016, consumer prices decreased by 0.4% over a month; they rose by 0.2% year-on-year

Prices index – July 2016

Monthly change: -0.4%; Year-on-year: +0.2%

In July 2016, the Consumer Prices Index (CPI) declined by 0.4% over a month, after an increase by 0.1% in June. Seasonally adjusted, it was stable in July after an upturn by 0.1% in June. Year-on-year, the CPI rose by 0.2%, as in the previous month.

This month-on-month drop was mainly due to summer sales, underlying the seasonal fall in prices of manufactured products. Besides, energy prices fell back because of petroleum products. Conversely, prices of some services related to tourism expanded seasonally. Finally, food prices were very slightly up.

Seasonal fall in manufactured products

Manufactured products prices dropped seasonally in July (-2.9% against -3.1% in July 2015; -0.3% year-on-year) due to summer sales involving especially clothing and footwear (-14.2% against -14.4% in July 2015; + 0.7% year-on-year). To a lesser extent, prices of other types of products diminished with summer sales, such as travel goods (-5.3%; +1.8% year-on-year), furniture and furnishings (-4.3%; +0.1% year-on-year), audio-visual, photographic and information processing equipment (-1.2%; -2.9% year-on-year), textile household articles (-1.8%; +1.9% year-on-year) and household appliances (-1.4%; -1.0% year-on-year). In addition, prices of new motor cars weakened owing to some discounts (-0.3%; -1.9% year-on-year). Lastly, prices of health products slipped again (-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 July 016 m-on-m change y-on-y change
a) All households
Overall 10000 100.25 -0.4 0.2
Overall SA* 10000 100.32 0.0 0.2
Food 1615 100.87 0.1 1.2
Fresh food 217 105.89 0.6 8.5
Other food 1398 100.08 0.0 0.1
Tobacco 195 100.13 0.0 0.1
Manufactured products 2651 97.33 -2.9 -0.3
Clothing and footwear 414 88.79 -14.2 0.7
Medical products 466 96.76 -0.2 -2.7
Other manufactured products 1771 99.25 -1.0 -0.2
Energy 773 98.07 -1.3 -3.3
Petroleum products 419 96.83 -2.4 -6.6
Services 4766 102.04 1.0 0.8
Actual rentals and services for dwellings 768 100.59 0.0 0.9
Medical services 598 100.55 0.2 0.6
Transport 279 104.97 7.3 -2.1
Communication 245 102.54 -0.1 1.9
Other services 2876 102.42 0.9 1.0
Total except rents and tobacco 9183 100.25 -0.4 0.2
Total except tobacco 9805 100.26 -0.4 0.2
b) Urban working-class households or households of employees
All products excluding tobacco 9704 100.03 -0.6 0.0
c) Households that belong to the lowest equivalized disposable income quintile - France
All products excluding tobacco 9696 99.93 -0.5 -0.2

Downturn in energy prices

After four consecutive months of increases, energy prices were fell back anew in July 2016 (-1.3%; -3.3% year-on-year), driven by the reversal in petroleum product prices (-2.4%; -6.6% year-on-year). On the contrary, city gas prices, indexed with delay to the changes in oil prices, rose in July (+0.3%; -9.4% year-on-year). Electricity rates were stable over the month (+4.1% year-on-year).

Hike in service prices

Every year in July, services prices grew during the summer holidays (+1.0% over this month, +0.8% year-on-year). Thus, prices of accommodation services increased by 10.3 % over the month, but diminished year-on-year (-0.2%). Likewise, prices of package holidays leapt seasonally in July 2016 (14.4%; +2.1% year-on-year) as well as airfares (21.7%; -2.7% year-on-year). Moreover, prices of communication services were virtually stable in July (-0.1%; +1.9% year-on-year), but with contrasting variations depending on the type of services: Internet access prices declined whereas those of mobile phone services increased slightly .

Very slight rise in food prices

In July 2016, food prices were very slightly up (+0.1%; +1.2% year-on-year after +0.6%). Fresh foodstuffs became more expensive (+0.6% against -4.1% in July 2015), a portion of this difference (about 2 pourcentage points) arose from a new method of calculation implemented through the CPI change of base (see explanatory note). Excluding fresh products, food prices were unchanged for the eighth month in a row. Year-on-year, they were up by barely 0.1%, as in June.

Slowdown in core inflation

In July 2016, the core inflation indicator (ISJ) edged down by 0.1%. Year-on-year, it increased by 0.5%, at a slightly slower pace than in the two previous months (+0.7%). The Harmonised Index of Consumer Prices (HICP) dropped by 0.4% over one month, as the CPI; year-on-year, it rose by 0.4% (+0.3% in June).

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 July 2016 m-on-m change y-on-y change
Core inflation - All items 6075 100.67 -0.1 0.5
Food excluding fresh products, meat, milk and exotic products 735 100.01 0.0 0.0
Manufactured products 2136 99.96 -0.1 0.1
Services including actual rentals and services for dwellings 3204 101.26 -0.1 1.0
HICP - All items 100.39 -0.4 0.4

Revisions

Compared to the provisional estimates published on 29 July, the monthly and annual rates of change in the CPI and HICP are unrevised.

Informations Rapides

n° 207 - August 11, 2016

Consumer price index - final results - July 2016

Next issue September 14, 2016 08:45 - August 2016

See also