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  • Writer's pictureanalysiswatch

Title: French Inflation Rises by 6.5% in August

Aug 31, 2022 03:12AM

By: AnalysisWatch

French price growth decelerated by more than expected in August, edging down from its highest point since the early 1990s during the previous month, but still remains at a historically elevated level.

The country's closely-watched consumer price index rose by 6.5% on an annual basis when harmonized with the European Union's methodology, according to preliminary data from France's INSEE national statistics institute. Economists had anticipated the reading to decrease to 6.7% in August, after the key measure of domestic inflation jumped by 6.8% in July.

INSEE said a slowdown in energy prices drove the drop in inflation, with fuel costs rising by 22.2% compared to 28.5% in the prior period, offsetting an increase in price of manufactured goods and foods. However, on a year-by-year comparison, energy prices were well above the August 2021 mark of 12.7%.

Wednesday's data could bolster the claim put forward by some French leaders that price growth in Europe's second largest economy likely topped out in July. The French government has recently moved aggressively in a bid to corral soaring inflation, unveiling a raft of spending measures like electricity price caps and gas price freezes.

Consumer prices have subsequently been lower in France when compared to other European countries, many of whom are facing double-digit increases in inflation. On Tuesday, Germany's monthly consumer price index registered 8.8%, its highest point in nearly half a century

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