Pantheon Macro: French inflation will slow further

Claus Vistesen, chief euro zone economist at Pantheon Macroeconomics, said French inflation will continue to decline in the coming months.

French statistical agency Insee data showed that the French CPI annual rate fell to 4.3% in July, and the core inflation rate fell to 5%.

Vistesen said the headline inflation rate was marked by deflation in energy prices from a high base last year, while services sector inflation appeared to be moderating and had a dampening effect on core inflation.

“We think this trend will continue from now until year-end as energy and core inflation decline.”