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French Inflation Hits ECB Target in June as it Slows

June 30 (Reuters) - French inflation slowed in ​June for the first time this year, ‌pulling back from a more than two-year high as energy prices ebbed, preliminary data from ​statistics agency INSEE showed on Tuesday.

  • The ​harmonised rate in the euro zone's ⁠second-biggest economy, adjusted for comparison with other ​EU countries, fell to 2.0% year-on-year in ​June, in line with the European Central Bank's target

  • The preliminary reading was down from 2.8% in May, ​snapping five consecutive months of acceleration that ​had begun in January

  • The June rate came in well ‌below ⁠a Reuters poll of 17 analysts' expectations, which had an average forecast of 2.3%

  • The slowdown was mainly due to a ​5% monthly ​decrease in ⁠energy prices, particularly petroleum products, which nonetheless remained high at +11.2%, ​after climbing sharply since the start ​of ⁠the Iran war

  • Services inflation also eased, to 1.8% from 2.1% in May, while manufactured ⁠goods ​prices fell for a ​third straight month, deepening to -0.9% from -0.6%

Reporting by Gianluca Lo Nostro; ​Editing by Andrew Heavens and Sharo Singleton

Source: Reuters


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