France's Inflation Rate Unchanged in July

The annual inflation rate in France remained steady at 1% in July, mirroring June's figures, as reported by INSEE, the national statistical office, on Tuesday. A slight monthly increase of 0.2% in the Consumer Price Index (CPI) was noted from June to July.

Key Factors Behind the Stability

This stability was largely influenced by a sharper decline in energy prices, attributed to the base effect from last year's surge in gas prices. Meanwhile, the prices of manufactured goods continued their downward trend at a consistent rate. In contrast, food and service costs experienced a marginal uptick, partially counteracting the deflationary pressure from energy.

EU-Wide Inflation Comparison

The Harmonized Index of Consumer Prices (HICP), crucial for EU comparisons, showed a year-on-year increase of 0.9%, unchanged from June. On a monthly basis, the HICP rose by 0.3%, following a 0.4% increase in the preceding month.