Consumer prices were unrevised in the final report for July. A 0.1 percent monthly dip in the CPI was small enough to lift the annual inflation rate from June's final 2.0 percent to 2.3 percent, equalling its strongest outturn since January 2012.
The flash HICP similarly matched its flash readings and so still shows a 0.1 percent monthly fall and a 2.6 percent yearly increase, up from 2.3 percent in June.
Headline prices continue to be buoyed by more expensive energy and, despite a 0.1 percentage point rise versus June, the annual core CPI rate was still a tick short of the 1 percent mark. Indeed, manufacturing remains mired in deflation (yearly rate minus 0.1 percent) so the positive overall CPI rate was wholly attributable to services where the rate advanced from 1.2 percent to 1.3 percent.
In line with much of the Eurozone, French inflation has climbed significantly since early last year. Nonetheless, the bulk of the acceleration has been due to the more volatile subsectors and underlying prices continue to rise only slowly and remain vulnerable to any renewed slowdown in economic activity.