Consumer prices rose by 2,1% year-on-year in July, following a 1,8% increase in June, INSEE confirmed. This acceleration is mainly due to higher energy and service prices, against a backdrop of war in the Middle East and persistent tensions over hydrocarbon supplies.
Energy prices rose by 12,6% year-on-year, compared to 11% in June. Gas saw a particularly sharp increase of 17,7%, while petroleum products rose by 20,7%. Services also saw an increase of 2,2%, driven in particular by accommodation, food services, transportation, communications, childcare, and retirement homes.
Food products increase by 1%
Food prices rose by 1% year-on-year, with fresh produce increasing by 3,8%. In supermarkets, prices for processed foods, cleaning products, and personal care products remained stable year-on-year, but increased by 0,6% between June and July.
The decline in manufactured goods prices eased, falling by 0,7% after a 1,1% decrease in June linked to the timing of the sales. The Harmonised Index of Consumer Prices (HICP), used to compare inflation between euro area countries, reached 2,4% year-on-year in July, compared to 2% the previous month.
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