Inflation in France accelerated in July more than expected, reaching new record levels, primarily due to higher energy and food prices, preliminary data from the French national statistics office Insee published on Friday showed.
Consumer prices rose in July on a year-on-year basis by 6.1 percent, above the increase of 5.8 percent in June. This is higher than the average analyst expectation of a 6 percent increase.
The upward trend in inflation has been largely driven by a 28.7 percent jump in energy costs. This is followed by a 6.7 percent rise in food prices. The increase in service costs related to the summer period also supported the overall price growth in July.
On a monthly basis, consumer prices in July increased by 0.3 percent, after a 0.7 percent rise in the previous month, in line with expectations.
Inflation in the EU also rose in July to a new record rate of 6.8 percent, compared to 6.5 percent in June. The expected rate was 6.7 percent.
Previously, the highest inflation since records began was in 1997. On a monthly basis, the harmonized index of consumer prices (HICP) strengthened by 0.3 percent compared to June, when it rose by 0.9 percent. This is also in line with forecasts.
