According to INSEE, the cost of energy rose by just 0.5% year-on-year in August 2024, compared with a rise of almost 7% over the same period the previous year.
Inflation in France: slowdown to 1.9% in August, first time below 2% since 2021

Inflation in France rose by 1.9% in August, marking the first time since August 2021 that it has fallen below the symbolic 2% threshold. These figures were announced by INSEE on Friday 30 August. After rising by 2.3% year-on-year in July, the consumer price index slowed, mainly due to a marked deceleration in energy prices, explains the National Institute of Statistics and Economic Studies in this provisional estimate, which awaits confirmation in September.

Slower energy prices

The cost of energy rose by just 0.5% year-on-year in August 2024, a far cry from the surge of almost 7% seen at the same time last year. This slowdown can be explained by the impact of the rise in regulated electricity tariffs, applied from 1 August 2023, INSEE points out.

Stable food prices and an increase in services

Food prices rose by a moderate 0.5% year-on-year, the same rate as in July. By contrast, services, which account for a large proportion of the price index, saw their prices rise by 3.1% year-on-year, compared with 2.6% in July.

Possible revision in September

It should be noted that INSEE could adjust this estimate at the revision scheduled for 13 September. In May and June, the Institute revised its inflation forecasts upwards by 0.1 points, a possibility that could be repeated this time too.