France: inflation revised slightly up in August, to 5.9% over one year according to INSEE

"Taking into account the latest price readings at the end of the month results in a less marked slowdown in energy prices and a more sustained acceleration in food prices", details the National Institute of Statistics in a communicated.

The evolution of the harmonized index, which serves as a basis for comparison at European level, was also corrected by INSEE (0.1 point compared to the first estimate, to reach 6.6% over one year in August ).

Despite these revisions, the fall in the consumer price index in August compared to July (6.1% over one year) is confirmed.

"This slight drop in inflation is the result of the slowdown in energy prices (22.7% over one year in August after 28.5% in July), particularly those of petroleum products (28.7% after 39.0% )", explains INSEE.

On the other hand, "those of food are accelerating (7.9% after 6.8%) as well as those of manufactured products (3.5% after 2.7%)".

Among food products, the rise in prices for fresh fruit, meat, dairy products, bread and beverages accelerated particularly compared to July.

Fresh vegetables and fish, on the other hand, experienced a slower increase in their selling prices in August than in the previous month.

The government recently raised its inflation forecast for 2022 to 5.3% against 5% expected so far.

For 2023, the executive expects inflation to remain high (4.2%) and well above the 2% target set by the Central Bank as part of its price stability mission.

On Tuesday, the Minister of the Economy Bruno Le Maire stressed that the gradual withdrawal of support measures (fuel discount, increase in gas and electricity prices by 15% on January 1, 2023) would result in "high inflation " in "December, January, February 2023".

"We do not expect any improvement on the inflation front before sometime in 2023," he said.