13 SEPTEMBER 2011

CONSUMER PRICES increased +0.4% in August in Metropole month-on-month and in one year climbed +1.2% (from +0.9% last month on an annual basis) according to the latest national statistics http://www.insee.fr

Including the French Overseas Departments (DOM TOM), inflation rose +0.4% and +2.2%.

In August and month-on-month, food price inflation subsided -0.2% due to fresh products -3.6% price cut (fruit -5.3% and vegetables -2%) but excluding fresh food prices rose +0.4%.

Manufactured products prices +1.6% increase pushed up overall consumer prices as clothing and footwear shot up +9.8% with the end of the summer sales period. Health product prices fell -0.2% and other manufactured products climbed +0.5%.

Energy prices rose +0.4% as oil products prices stabilized although Brent crude oil prices fell -5.5% expressed in currency on the same period to USD 110.1 and -5.8% to Euro 76.8.

The services prices index stayed unchanged or +0.1% thanks to health services -0.6% as transport and communication prices increased +0.3% and other services +0.2%.

In one year, the biggest price hikes were recorded by coffee-tea-cocoa +11.7%, oil and fat +7.3% bread and cereals +2.6% and meat +3.3%. Liquid combustibles +22.8% added to the index inflationary trend.