The year-on-year consumer price index (CPI) in France was 4.3 percent in July, thus continuing a slow but steady downward trend in inflation, according to a preliminary report released by the French National Institute of Statistics and Economic Studies (INSEE) on Friday.
In June, the year-on-year CPI stood at 4.5 percent, making it the first time that the country’s inflation stayed below the 5 percent benchmark since April 2022.
The INSEE contributes the downward trend in inflation to lower energy prices and a slower increase in the prices of food products (for the fourth consecutive month) and of manufactured goods.
The INSEE estimates that energy prices in France decreased about 3.8 percent in July, following a 3 percent decrease in June.
In the case of food products, the price hikes should continue to slow down and reach 12.6 percent in July, the INSEE said.
While energy prices in France have been decreasing, the French government announced earlier this week that the regulated electricity price will increase by 10 percent from August 1, for both households and small businesses.