In August 2017, consumer prices rose by 0.5% over a month and by 0.9% year on yearConsumer price index - final results - August 2017

In August 2017, the Consumer Prices Index (CPI) recovered by 0.5% over a month, after a decline of 0.3% in July. Seasonally adjusted, it increased by 0.2% after two months of stability. Year on year, consumer prices accelerated to +0.9% after +0.7% in July.

Informations rapides
No 240
Paru le : 14/09/2017
Prochaine parution le : 12/10/2017 at 08:45 - September 2017

Monthly change: +0.5%; Year-on-year change: +0.9%

In August 2017, the Consumer Prices Index (CPI) recovered by 0.5% over a month, after a decline of 0.3% in July. Seasonally adjusted, it increased by 0.2% after two months of stability. Year on year, consumer prices accelerated to +0.9% after +0.7% in July.

Over a month, the rebound in prices resulted from that, seasonal, of manufactured product prices, and also from an upturn in energy prices. Contrariwise, services prices slowed down sharply due to a seasonal downturn in airfares and a slowdown in those of accommodation services. Food prices were stable.

Seasonal rebound in manufactured products

Manufactured products prices recovered sharply in August with the end of summer sales in metropolitan France (+1.1%; −0.7% year on year). However, this rebound was less marked than last year (+1.4% in August 2016) due to a later end date of sales this year. Thus, clothing and footwear prices rebounded less steeply than in August 2016 (+6.3% against +8.7%). Year on year, their prices fell back markedly (−1,3%). The prices of “other manufactured products” recovered moderately (+0.3% after −0.7%; −0.1% year on year). In particular, the prices of furniture and furnishings (+1.6%; 0,0% year on year) and household appliances (+1.1%; −1,5% year on year) rose anew. Contrariwise, the prices of audio-visual, photographic and information processing equipment (−0.1%; −2.2% year on year) and open-air equipment (−0.4%; −1.1% year on year) dropped again. Motor car prices were stable over a month (+1.1% year on year). Medical products prices continued to decline slightly (−0,2%; −2.0% year on year).

Table1 – Detailed figures for various groups

2015: 100
Detailed figures for various groups
Items Weight Index Percentage change
2017 Aug. 2017 m-on-m change y-on-y change
a) All households
Overall 10000 101.49 0.5 0.9
Overall SA* 10000 101.15 0.2 0.9
Food 1627 101.67 0.0 0.6
Fresh food 235 105.59 −0.7 −0.8
Other food 1392 101.05 0.2 0.8
Tobacco 188 102.54 0.0 2.4
Manufactured products 2617 98.06 1.1 −0.7
Clothing and footwear 433 95.24 6.3 −1.3
Medical products 433 94.66 −0.2 −2.0
Other manufactured products 1751 99.56 0.3 −0.1
Energy 748 101.15 1.2 4.8
Petroleum products 378 100.87 1.6 7.6
Services 4820 103.35 0.3 1.2
Actual rentals and services for dwellings 779 101.07 0.0 0.4
Health services 600 101.53 −0.6 1.7
Transport 282 107.32 −0.5 3.2
Communication 242 97.59 0.0 −4.8
Other services 2917 104.42 0.6 1.5
Total except rents and tobacco 9183 101.54 0.6 0.9
Total except tobacco 9812 101.47 0.5 0.9
b) Urban working-class households or households of employees
All products excluding tobacco 9710 101.15 0.5 0.8
c) Households that belong to the lowest equivalized disposable income quintile - France
All products excluding tobacco 9705 101.01 0.5 0.8
  • *: seasonally adjusted
  • Geographical coverage: France excluding Mayotte
  • Source: INSEE - Consumer Price Indices

Clear upturn in energy prices

In August 2017, energy prices rebounded after five consecutive months of decline (+1.2% after −1.3% in July). Year on year, they gathered pace significantly to +4.8% after +1.9% in the previous month. The monthly marked upturn came essentially from that of petroleum products (+1.6% after −1.5%). The annual increase in electricity fees also contributed to it (+1.5% over a month and year on year). The overall rebound was attenuated by a drop in the prices of natural gas and town gas , for the second consecutive month (−0.7% in August; +1.7% year-on-year).

Marked slowdown in services prices

After an acceleration in July, services prices slowed down sharplmy in August (+0.3% after +1.0%; +1.2% year on year). Indeed, the prices of some services rose less than in July, such as accommodation services (+7.6% after +10.5%; +2.8% year on year) and package holidays (+13.2% after +17.0%; +6.8% year on year). The downturn in airfares (−3,2%; +4,3% year on year) also contributed to the slowdown in services prices. Contrariwise, the prices of railway transport accelerated (+0.5% after 0.0%; +0.5% year on year) due to the annual raise in public transport prices.

Stability in food prices

In August 2017, food prices were stable after having slightly recovered in July (+0.1%). Over a year, they slowed for the second consecutive month (+0.6% after +0.7% in July). The monthly stability came from a slight rise in food prices excluding fresh products (+0.2% over a month, +0.8% over a year) offset by a fall in fresh products prices for the third consecutive month (−0.7% in August; −0.8% year on year), essentially due to fresh vegetable prices (−2.9%). Excluding fresh products, meats (+0.4%;+1.4% year on year) and oils and fats (+1.0%;+3.4% year on year) became more expansive while the prices of dried vegetables (−0.2%; −0,9% year on year) and ice creams (−1.2%; −1,5% year on year) fell back.

Stability in core inflation over a year

In August 2017, the core inflation indicator (ISJ) was stable, as in the previous month. Over a year, it rose by 0.5%, as in July. The Harmonised Index of Consumer Prices (HICP) recovered to +0.6% over a month after −0.4% in July; year on year it gathered pace to +1.0% after +0.8% in July.

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 Aug. 2017 m-on-m change y-on-y change
Core inflation - All items 6134 101.14 0.0 0.5
Food excluding fresh products, meat, milk and exotic products 744 100.62 −0.1 0.5
Manufactured products 2136 99.45 −0.5 −0.4
Services including actual rentals and services for dwellings 3254 102.39 0.4 1.0
HICP - All items 101.74 0.6 1.0
  • * 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 31 August 2017, the month-on-month and year-on-year changes in the CPI and in the HICP have been confirmed.