French official inflation is 2.2% in August

13th September 2011, Comments 0 comments

French consumer prices rose by 0.5 percent in August from the level in July when they fell by 0.4 percent, putting 12-month inflation at 2.2 percent, the INSEE statistics institute said on Tuesday.

The increase in August reflected mainly the end of the summer retail sales period but also a rise in the prices of services in the tourism sector.

Seasonal prices of fresh food fell, as did prices in the health service sector. Energy prices rose.

At HSBC bank, analyst Mathilde Lemoine said that French inflation was converging with average inflation in the eurozone and might accelerate in the next two months.

It would then moderate, despite tax rises announced at the end of August, she said.

© 2011 AFP

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