Inflation rate in France increases slightly to 2.3 percent last month

(MENAFN) On Wednesday, France's official statistics office, Insee, reported that the country's annual inflation rate reached 2.3 percent in July, up from 2.2 percent in June. This marginal increase in inflation was primarily attributed to a sharp rise in energy prices over the month. According to the provisional data, the uptick in inflation reflects higher costs associated with energy, which have contributed significantly to the overall price level.

Insee noted that the prices of manufactured goods and tobacco are expected to continue rising at the same rate as observed in the previous month. This indicates a stabilization in the inflation rates for these categories, despite the broader increase in the general price level. On a monthly basis, consumer prices saw a modest increase of 0.1 percent in July, with particular upward pressure coming from the prices of services. This rise was driven by seasonal adjustments in transportation and accommodation services, which typically see price increases during the summer months.

The report also highlighted that energy prices are projected to rise further, driven largely by an increase in gas prices. This anticipated rise in energy costs is expected to continue influencing the overall inflation rate, as energy prices play a significant role in the cost structure of various goods and services.

Overall, while the annual inflation rate has edged up slightly, the monthly data shows that the inflationary pressures are concentrated in specific sectors such as energy and services. This nuanced view of the inflationary landscape helps in understanding the broader economic impact and the factors driving price changes in the French economy.

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