French official inflation slows in August to 1.4 percent

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French consumer prices edged up 0.2 percent last month, but inflation over 12 months slowed to 1.4 percent, the national statistics institute INSEE said on Tuesday.

In July consumer prices had fallen 0.3 percent over one month and 12-month inflation came in at 1.7 percent.

INSEE put the increase in August down to higher prices for manufactured goods after summer sales in July and a seasonal rise in prices for various services.

"There's no inflation risk in France," said economist Alexander Law with consultants Xerfi. He said that moderating inflation would boost households' purchasing power.

Economist Nicolas Bouzou with consultants Asteres said: "This contained inflation shows the still very limited and fragile nature of the recovery."

© 2010 AFP

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