Overview

• Annual inflation reached 1.0% in June after falling below 1% earlier this year
• Prices edged up 0.4% from May to June following a 0.1% decline the prior month
• Service sector prices rebounded by 0.6% month-on-month and rose 2.4% year-on-year driven by accommodation and transport services
• Energy price drops moderated to a 6.7% annual fall as food inflation accelerated to 1.4% and tobacco price growth eased to 4.0%
• Insee raised its harmonised CPI to 0.9% year-on-year and underlying inflation to 1.2%, factors expected to influence ECB deliberations on future rate moves