Inflation continues to decelerate. Where the rise in prices exceeded 6% at the start of the year, it is only 4.3% over one year in July (a further drop after the 4.5% in June), according to the figures communicated by INSEE this Friday, July 28. This slowdown can be explained both by a lower increase in food prices (12.6% over one year compared to 13.7% in June) and a more marked drop than in June in energy prices (-3 .8% after -3%), details the National Institute of Statistics and Economic Studies, which is to publish a second estimate of the consumer price index on August 11.
Food prices slowed for the fourth month in a row, both for fresh products (10.4% year-on-year after 11.2%) and other food products (13% after 14.1%). Manufactured goods also rose less rapidly than in June, thanks in particular to the summer sales. Their cost increased by 3.4% over one year against 4.2% the previous month.
Conversely, the prices of services accelerated slightly (3.1% over one year after 3%) during this school holiday period, while those of tobacco remained 9.8% higher than those practiced in July 2022, a percentage identical to that of June. “Over one month, consumer prices should be stable in July 2023, after 0.2% in June,” explains INSEE.
A reference indicator for comparisons between European countries, the harmonized index of consumer prices (HICP) increased by 5% year on year in July, after rising by 5.3% in June. Despite the gradual improvement in the consumer price index, the indicator remains a good distance from the 2% inflation target pursued by the main central banks of the planet.
