France's consumer price inflation accelerated in July as expected initially, latest data from INSEE showed Tuesday.
Consumer prices rose 2.3 percent year-on-year after a 2 percent increase in June. Higher energy prices led the acceleration.
Month-on-month, prices dropped 0.1 percent in July, mainly due to a seasonal fall in manufactured product prices due to summer sales. This was partly offset by a rebound in services prices, essentially in airfares with the beginning of school holidays.
Meanwhile, core inflation accelerated to 0.9 percent from 0.8 percent. Inflation based on the harmonized index of consumer prices, or HICP, accelerated to 2.6 percent from 2.3 percent, in line with initial expectations. The HICP dropped 0.1 percent from the previous month.