In July 2017, consumer prices decreased by 0.3% over a month and rose by 0.7% year on yearConsumer price index - final results - July 2017

In July 2017, the Consumer Prices Index (CPI) declined by 0.3% over a month, after a stability in June. Seasonally adjusted, it was unchanged for the second consecutive month. Year on year, consumer prices rose as much as in June (+0.7%).

Informations rapides
No 213
Paru le : 11/08/2017
Prochaine parution le : 14/09/2017 at 08:45 - August 2017

Monthly change: −0.3%; Year-on-year change: +0.7%

In July 2017, the Consumer Prices Index (CPI) declined by 0.3% over a month, after a stability in June. Seasonally adjusted, it was unchanged for the second consecutive month. Year on year, consumer prices rose as much as in June (+0.7%).

Over a month, the decrease in prices came from a significant downturn in manufactured product prices due to the summer sales and from a further drop in energy prices. Contrariwise, services prices accelerated sharply owing to rising airfares and accommodation prices during summer holidays. Food prices recovered slightly after a downturn in the previous month.

Seasonal fall in manufactured products

Manufactured products prices dropped seasonally in July (−2.9% as in July 2016; −0.4% year-on-year) due to summer sales involving especially clothing and footwear (−14.8% against −14.2% in July 2016; +0.9% year on year). To a lesser extent, the prices of some other types of products diminished with summer sales, such as travel goods (−5.0%; +0.8% year on year), textile household articles (−2.9%; −0.1% year on year), furniture and furnishings (−2.5%; +0.3% year on year), household appliances (−1.3%; −2.3% year on year) and audio-visual, photographic and information processing equipment (−1.0%; −2.3% year on year). In addition, the prices of health products continued to decrease slightly (−0.1%; −2.0% year on year). However, the prices of new motor cars increased a little (+0.2%) owing in particular to tariff changes for some manufacturers.

Table1 – Detailed figures for various groups

2015: 100
Detailed figures for various groups
Items Weight Index Percentage change
2017 July 2017 m-on-m change y-on-y change
a) All households
Overall 10000 100.97 −0.3 0.7
Overall SA* 10000 100.98 0.0 0.7
Food 1627 101.62 0.1 0.7
Fresh food 235 106.32 −0.6 0.4
Other food 1392 100.88 0.2 0.8
Tobacco 188 102.54 0.0 2.4
Manufactured products 2617 96.98 −2.9 −0.4
Clothing and footwear 433 89.59 −14.8 0.9
Medical products 433 94.81 −0.1 −2.0
Other manufactured products 1751 99.22 −0.7 0.0
Energy 748 99.95 −1.3 1.9
Petroleum products 378 99.31 −1.5 2.6
Services 4820 103.06 1.0 1.0
Actual rentals and services for dwellings 779 101.06 0.0 0.5
Health services 600 102.18 0.2 1.6
Transport 282 107.85 7.9 2.7
Communication 242 97.63 0.0 −4.8
Other services 2917 103.75 0.9 1.3
Total except rents and tobacco 9183 100.97 −0.4 0.7
Total except tobacco 9812 100.94 −0.4 0.7
b) Urban working-class households or households of employees
All products excluding tobacco 9710 100.62 −0.6 0.6
c) Households that belong to the lowest equivalized disposable income quintile - France
All products excluding tobacco 9705 100.52 −0.5 0.6
  • *: seasonally adjusted
  • Geographical coverage: France excluding Mayotte
  • Source: INSEE - Consumer Price Indices

Further drop in energy prices

In July 2017, energy prices declined for the fifth consecutive month (−1.3% after −1.5% in May and −1.1% in June). Year on year, they increased by +1.9%, as in the previous month. The further monthly decline in energy prices came from that of petroleum products (−1.5% after −2.2%) and of natural gas and town gas (−3.9%; +4.4% year-on-year). Electricity prices have been unchanged since August 2016.

Hike in service prices

Every year in July, services prices grow during summer holidays (+1.0% as in July 2016, +1.0% year on year). Indeed, the prices of accommodation services increased by 10.5 % over a month, barely more than in July 2016 (+10.3%). Likewise, airfares leapt seasonally in July 2017 (+21.8% over a month against +21.7% in July 2016, +2.5% over a year), as well as package holidays prices (+17,0%; +2.5% year on year). Moreover, insurance prices picked up (+0.4%, +2.4% year-on-year) mostly because of the end of promotional offers on dwelling insurance.

Weak rebound in food prices

In July 2017, food prices slightly recovered slightly (+0.1%) after a seasonal decrease in June (–0.3%). Over a year they rose by 0.7% after +0.8% in June. The slight monthly increase came from that of non fresh products prices (+0.2% over a month after +0.1%, +0.8% over a year), especially owing to a rebound in the prices of bread and cereals (+0.2%) and alcoholic beverages (+0.2%) and to a slight acceleration in the prices of milk, cheese and eggs (+0.2%). Moreover meat prices increased slightly (+0.1%, +1.2% year on year). On the other hand, fresh products prices decreased again (−0.6% after −2.3% in June ; +0.4% over a year), mostly because of fresh fruits (−0.7%) and fresh vegetables (−0.7%).

Slight increase in core inflation over a year

In July 2017, the core inflation indicator (ISJ) remained stable after a 0.1% rise in June. Over a year, it rose by 0.5% slightly faster than in June (+0.4%). The Harmonised Index of Consumer Prices (HICP) decreased by 0.4% over a month ; year on year it increased by 0.8% as in June.

Graph1 – Consumer Price Index (CPI), core inflation (ISJ)* and Harmonised Index of Consumer Prices (HICP)** year-on-year changes

Table2 – Detailed figures for Core inflation* and HICP**

2015: 100
Detailed figures for Core inflation* and HICP**
Items Weight Index Percentage change
2017 July 2017 m-on-m change y-on-y change
Core inflation - All items 6134 101.15 0.0 0.5
Food excluding fresh products, meat, milk and exotic products 744 100.70 0.2 0.7
Manufactured products 2136 99.96 −0.1 0.0
Services including actual rentals and services for dwellings 3254 102.01 0.1 0.8
HICP - All items 101.17 −0.4 0.8
  • * 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

Revisions

Compared with the provisional estimates published on 28 July 2017, the month-on-month and year-on-year changes in the CPI and in the HICP have been confirmed.