Published on : 29/07/2022 – 11:02
The pace of inflation over one year in France accelerated to reach a new record in July, at 6.1% over one year, according to a first estimate published Friday by INSEE. At the same time, growth rose sharply by 0.5% in the spring.
A new record ofinflation in France. The consumer price index increased by 6.1% over the twelve months to the end of July, against 5.8% at the end of June, according to a still provisional estimate of theInsee. An unprecedented level since the start of this statistical series in January 1991.
The price index harmonized according to European HICP standards, which allows comparisons with other countries in the euro zone, is up 6.8% over one year, a level slightly higher than economists’ expectations. polled by Archyde.com, who anticipated it at 6.7%.
Although certain government measures, such as the tariff shield on energy prices, have made it possible to contain the increase in inflation in France compared to that observed in other countries of the euro zone, it nevertheless remains well above the objective of the European Central Bank (ECB), of a price increase of just under 2% for the euro zone as a whole.
The ECB, determined to bring inflation back to the target level over time, raised interest rates for the first time in 11 years last week, even tightening the screw more than expected with an increase in half a point of its key rates.
The final consumer price index for July, the only one valid for the indexation of private contracts, life annuities, alimony or the evolution of the minimum wage, will be released on August 12.
Good surprise on the growth side
Despite this rise in prices which continues to weigh on consumption, France recorded net growth of 0.5% in the spring, according to INSEE.
This first estimate of gross domestic product (GDP) in the second quarter will nevertheless have to be confirmed at the end of August.
While growth in the second quarter was expected at 0.2% by the Banque de France and 0.25% by the National Institute of Statistics, it finally settled at 0.5% compared to the first quarter. .
“It’s a good surprise, but you have to look at the details,” reacted to AFP Ana Boata, director of economic research at Allianz Trade. It is particularly concerned about the persistent weakness of household consumption, which it attributes to tensions on purchasing power linked to high inflation.
The good performance of the French economy in the second quarter is explained by a clearly positive contribution of foreign trade to growth.
According to this first estimate of the national accounts, imports fell 0.6% in the second quarter, while exports jumped 0.8%.
The latter were “driven in particular by transport services (+6.3%, after +5.0% in the first quarter) and spending by foreign travelers in France (+8.6% after +5%)”, details INSEE.
“Conversely, exports of goods fell back (-0.6% after +1.4%), particularly in transport equipment and agri-food”, further specifies the institute.
With AFP and Archyde.com