13 August 2010

2010- n° 204

The consumer price index decreased by 0.3% in July 2010 Consumer price index - final results - July 2010

In July 2010, the consumer price index (CPI) decreased by 0.3%, after a steadiness in June. Year-on-year, he was increasing by 1.7%.

The price index without tobacco decreased also by 0.3% in July (+1.6% year-on-year).

Adjusted from the seasonal variations, the monthly change went up by +0.1% (+1.7% year-on-year).

The decline of July index came mainly from clothing and footwear sector and other manufactures, with the summer sales and from the weakening of the prices of fresh products.

Those drops were partly counterbalanced by the seasonal rise of the prices of services linked with tourism and some price lists increases. Energy prices were steady, the rise of town gas rates was offset by the decrease of the prices of oil products.

In July, the prices of manufactured products were decreasing by 1.6% (steadiness year-on-year; –1.8% in July 2009).

The prices of the services were rising by 0.7% in July 2010, such as in July 2009. Year-on-year, the change reached +1.3% (+2.3% in July 2009).

In July, the energy prices were steady (+10.5% year-on-year). Actually, the rise of town gas rates (+4.8%; +15.0% year-on-year) was counterbalanced by the decrease of the prices of oil products (–1.1%, such as in June; +13.6% year-on-year), in the wake of the recent declines of crude oil rates.

The prices of food products edged down by 0.5% in July 2010 (–0.7% in July 2009; +1.4% year-on-year). This decline is mainly due to the seasonal weakening of the prices of fresh products (–4.4%; –6.1% in July 2009; +13.5% year-on-year).

Core-inflation (ISJ) rose slightly in July 2010 (+0.1%). Year-on-year, core-inflation was decreasing, from 1.4% in June 2010 to 0.8% in July 2010, the increase by 0.7% in July 2009, due to the mechanical side-effect of the decrease of the VAT rate in cafés and restaurants on core-inflation, going out from the year-on-year change. The year-on-year change of ISJ had never been so low since August 2005.

The harmonised consumer price index (HCPI) was down by 0.3% (+1.9% year-on-year).