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French inflation accelerates in July as services and energy rise

Preliminary figures showed headline inflation up 0.6% month over month in July, and services inflation climbed to 2.3% from 1.9% in June.

Reported · Written up by our desk · Inflation

Forexlive reports that France’s preliminary July inflation readings accelerated, with the increase driven largely by re-accelerating services prices and higher energy costs.

Headline CPI was up 2.1% year over year in July, compared with 1.8% expected, after rising 1.8% in the prior period. On a monthly basis, headline inflation rose 0.6% in July, rebounding from the -0.3% estimate in June.

The outlet said preliminary HICP inflation rose to 2.4% year over year versus 2.1% expected, with services inflation climbing to 2.3% from 1.9% in June. Communication services and accommodation services were cited as notable contributors, while gas and petroleum products lifted energy prices.

Forexlive added that energy inflation edged up to 12.4% in July from 11.0% in June, while food prices were steady at 0.9%. The data, the outlet said, could add pressure on the ECB to act again in September by raising interest rates further.

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