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Financial News: France's Inflation Accelerates In June

France's Inflation Accelerates In June

06/28/2019 - 04:10:00 (RTTNews)

(RTTNews) - France's inflation accelerated in June on services and food prices, preliminary data from the statistical office Insee showed Friday.

Consumer price inflation rose more-than-expected to 1.2 percent in June from 0.9 percent in May. Inflation was forecast to rise moderately to 1 percent.

This rise in inflation resulted from a stronger increase in services and food prices and a drop a little less marked in those of manufactured goods, the Insee said.

On a monthly basis, the consumer price index rose 0.2 percent, slightly faster than the 0.1 percent rise a month ago. Economists had forecast prices to remain flat in June.

EU harmonized inflation accelerated to 1.4 percent from 1.1 percent in May. Month-on-month, the harmonized index of consumer prices gained 0.3 percent, following a 0.1 percent increase.

Another report from Insee showed that producer prices in domestic market decreased 0.4 percent on month in May, following a 0.8 percent fall in April. On a yearly basis, producer prices gained 0.8 percent in May.

French household spending grew at a pace of 0.4 percent in May, following a 0.3 percent rise in April. The growth was largely driven by a 0.6 percent rise in energy consumption.

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