France Inflation Rate

The annual inflation rate in France likely quickened to 5.8% in June of 2022, the highest since July of 1985, and slightly above market forecasts of 5.7%, preliminary estimates showed. Main upward pressure should come from prices of energy and food prices due to ongoing disruptions caused by Russia's invasion of Ukraine. Meanwhile, the prices of services should maintain at the same level as in May and those of manufactured goods should slow down. On a monthly basis, consumer prices are expected to increase by 0.7%, as in May, in line with market forecasts. The prices of energy should accelerate sharply linked with those of petroleum products, while those of manufactured goods are likely to remain stable due to the beginning of the summer sales. The prices of services and food should slow down. The harmonized consumer price index should hit 6.5% yoy in June, above market estimates of 6.3%, the highest since INSEE began using EU methodology to calculate inflation in the early 1990s.