French inflation slows in July, 1.7 percent in year

13th August 2010, Comments 0 comments

French consumer prices fell 0.3 percent in July, putting 12-month inflation at 1.7 percent, the national statistics institute INSEE said on Friday.

The drop was largely due to a fall in the price of clothes and other manufactured goods during the recent summer sales period and the seasonal easing of fresh food prices, INSEE said.

"We have a bit of inflation but it is very contained," Economy Minister Christine Lagarde said on Europe 1 radio.

"The French are consuming and saving and the support to growth from consumption is excellent news," she said, citing separate data also published by INSEE Friday that showed 0.6 percent growth in the second quarter.

© 2010 AFP

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