Source:Insee

16 AUGUST 2011

CONSUMER PRICES fell -0.2% in July in Metropole month-on-month and in one year moved down to +0.9% while including the French Overseas Departments (DOM TOM) inflation decreased by 0.4% and inched down to +2%

The five-week Summer sales period effective from the last week of June, seven days ahead of schedule, pushed down manufactured goods prices by 2.6% while the June E.coli outbreak and above normal rainy days this month substantially reduced demand for fresh produce on top of a mechanical seasonal price cut, -4.3%. Excluding fresh products, food products rose +0.5% due to coffee-tea-cocoa +1.2% increase, oil and fat +0.8%, and alcohol free beverages +0.7%.

Clothing and footwear prices decreased by 13.3%, personal care products remained unchanged and other manufactured products prices fell -0.8% as jewelry and clocks prices fell -1.8% and other personal items -3.2%.   

Energy prices stayed stable as crude oil products prices dipped -0.6% price decline. Tobacco prices remained stable. The services price index rose a steep +0.8% due to the usual price increases effective on the first day of the month and annually including electricity +1.4%. Rent-water and garbage collection services grew +0.2% while transport and communication jumped +1.3% as transport +0.5% price hike was due to train fares +0.9%, air fares +8.7% and other sea and river transport services +3.1%. Communication -0.6% price cut offset a higher sub component price hike despite postal services +2.2% price increase thanks to phones and fax machines -0.7%.  Other services recorded +1.1% price rise pushed up by accommodation services  +13%

In one year, food price inflation caused food prices to jump +2.1% and despite fresh products mechanical -3.7% price cut as commodity prices stayed sustained. Excluding fresh products food prices soared +3% inflated by coffee-tea-cocoa +9.4%, oil and fat +6.3%, meat +3.1%, mile cheese and eggs +3.4% as well as sugar-jams-ice cream and sweets +2.7% with sugar prices recording record high increases, +13% month on month, on exchanges.

Manufactured products prices fell -0.8% due the seasonal sales with clothing and footwear prices down 4.9%, and health products -1.3% while other manufactured products rose +0.2%.   Despite crude oil prices monthly dip, energy prices dragged along previous hikes and climbed +11.5% and oil products prices +14.6%.

The services price index rose +1.9% with rent-water and garbage collection services up 2%, health services +1.1% due to dental services +1.2%. Transport and communication consumer prices declined -0.8% as transport +4.3% was offset by communication -3% while inversely other services prices rose +2.6%.