July 29, 2022 06:45 GMT
FRANCE JUL FLASH CPI +0.3% M/M (FCST +0.3%), +6.1% Y/Y (FCST 6.0%); JUN +5.8% Y/Y
FRANCE JUL FLASH HICP +0.3% M/M (FCST +0.2%), +6.8% Y/Y (FCST 6.7%); JUN +6.5% Y/Y
- French inflation came in 0.1pp stronger than anticipated in the July flash year-on-year prints, both accelerating by 0.3pp to +6.1% y/y (CPI) and to +6.8% y/y, respectively.
- The increase in inflationary pressures was largely due to a boost in Summer service prices (+3.9% y/y vs Jun +3.3%) and food prices (+6.7% y/y vs Jun +5.8%).
- Energy prices slowed in July to +28.7% y/y following the acceleration to +33.1% y/y in June.
- The uptick in service charges highlights more broad-based entrenched inflationary expectations.
- This further boost to headline inflation coupled with the robust Q2 2022 GDP print suggests the French economy currently offering no reasons for the ECB not to push ahead with monetary tightening.
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