12 July 2018

2018- n° 182

In June 2018, consumer prices were stable over one month and rose by 2.0% year on year Consumer price index - final results - June 2018

In June 2018, the Consumer Prices Index (CPI) was stable over a month, after an acceleration in May (+0.4% after +0.2% in April). This stability resulted from a rise in energy prices, less markedly than in May (+0.9% after +2.0%), offset by a downturn in food prices (−0.2% after 0.9%). “Manufactured product” prices were unchanged after a 0.3% increase in the previous month. Services prices were also stable after +0.1% in May.

Seasonally adjusted, consumer prices were stable after a slight acceleration to +0.3% in May.

Year on year, consumer prices rose by 2.0%, as in the previous month. This stability in inflation reflected two opposing trends: a sharp year-on-year acceleration in energy prices and, to a lesser extent, in these of food and tobacco, while those of services slowed down. “Manufactured product” prices fell at the same pace as in the previous month.

Year on year, core inflation slighlty dropped: +0.8% after +1.0% in the previous month. The Harmonised Index of Consumer Prices (HICP) were stable after an acceleration in May (+0.5%); year on year, it grew by 2.3%, as in the previous month.

Energy infation sharply gathered pace in June 2018 for the third consecutive month (+12.3% year on year after +10.0%). Petroleum product prices rose more than in May (+21.0% year on year after +17.0%): falling in June 2017 (−2.2% over a month), their prices increased in June 2018 (+1.2%), but less pronounced than in the previous month in the wake of Brent prices (+3.5%). Moreover, gas prices strongly grew (+6.0% year on year after +4.1%).

In June 2018, food prices barely gathered pace: +1.9% year on year, the highest increase since January 2013, after +1.8% in May. The prices of fresh food products rose more than in May (+5.9% year on year after +5.0%), due to a monthly downturn less pronounced this year (−1.4% against −2.3% in June 2017). Excluding fresh products, food prices were up by 1.2% year on year for the fifth consecutive month.

Tobacco prices remained dynamic (+16.3% year on year after +16.1%).

Year on year, services prices sharply slowed down: +1.2% in June after +1.5%. The prices of actual rentals and services for dwellings edged down (−0.2% after +0.7%), due to a drop in social rental prices concurrent with these in individual housing benefits. Health services prices sharply slowed down (+0.5% year on year after +1.1%), the medical convention signed in August 2016 having provided changes of some fees in June 2017. Transport prices also rose less sharply (+0.6% year on year after +2.4%), due to a slowdown in airfares (+0.6% year on year after a +2.0% rebound in May). Moreover, the prices of rail transport slightly rose (−0.2% year on year after +0.8%), because of promotional offers in discount cards. The prices of communication services slowed down (+0.7% year on year after +1.1%). Contrariwise, accommodation services prices accelerated (+5.2% year on year after +3.5%).

Year on year, “manufactured product” prices dropped by 0.2%, as in the previous month. Clothing and footwear prices dropped a little more than in May (−0.3% year on year after −0.2%), due to a sharper fall in clothing prices (−0.4% year on year after −0.1%). The prices of “other manufactured products” rose barely less (+0.2% year on year after +0.3%). New motor cars prices slowed down (+1.8% year on year after +2.2%) and games, toys and hobbies prices dropped more (−2.0% after −1.2%). Year on year, those in household appliances dropped less markedly than in the previous month (−1.2% after −1.7%) and those of furniture rebounded (+0.8% after −0.5%). On the other hand, health product prices dropped again (−2.2% year on year after −2.3%).

Compared with the provisional estimates published on June 29, 2018, the month-on-month and year-on-year changes in the CPI and in the HICP are down by 0.1points.