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)
