French consumer price index will increase by 4.5% year-on-year in June, after rising 5.1% in the previous month, according to the provisional estimates by INSEE.
This decrease in inflation is due to a downturn in energy prices and a slowdown in food prices, the statistics office noted.
The prices of services is projected to increase over one year at a rate close to that of the previous month, and those of manufactured goods to accelerate slightly due to the late start of summer sales this year.
Month-on-month consumer prices will increase by 0.2% in June 2023, after 0.1% decline in May.
Energy price is expected to rebound slightly in the wake of petroleum product prices.
The prices of services should increase at a rate close to that of the previous month and those of manufactured goods should remain almost unchanged, INSEE added.
The prices of food, excluding fresh products, is likely to slow down for the third consecutive month in June.
Consumer Prices
Year on year, the harmonised index of consumer prices should rise by 5.3% in June 2023, after a 6.0% increase in May.
Over one month, it should increase by 0.2%, after a 0.1% decline in the previous month.
Elsewhere, Danone and Kellogg are among 75 consumer goods companies that French authorities have asked to cut prices, according to a list seen by Reuters that sources say the government is using for the initiative.
Finance minister Bruno Le Maire said on 9 June he had secured a pledge from some companies to cut prices on hundreds of products, under threat of financial sanctions if they fail to follow through.
© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
