French preliminary June inflation at +2.5%, in line with expectations

French consumer prices rose 2.5% year-on-year in June, in line with expectations, preliminary data from statistics agency INSEE showed on Friday.

Economists polled by Reuters had forecast on average an EU-harmonised inflation rate of +2.5% in June.

The consumer prices slightly slowed down in the month, compared to the May reading of +2.6%, the preliminary data showed.

That slowdown can be explained by lower food and energy prices, INSEE said. It added that prices for services, manufactured goods and tobacco were expected to rise over the year at the same rate as in the previous month.

Separately, INSEE said French consumer spending rebounded in May and rose by 1.5%, after a revised 0.9% drop in April.

The recovery was due to the high growth in consumption of both food and energy, it said.
Source: Reuters (Reporting by Michal Aleksandrowicz, Dimitri Rhodes and Augustin Turpin in Gdansk; editing by Milla Nissi)