PARIS (Reuters) - French inflation eased unexpectedly in June to hit its lowest level in over four years, according to a preliminary reading from the INSEE statistics agency on Tuesday.
EU-harmonised data showed that consumer prices fell 0.1% from May, which meant the 12-month inflation rate slipped to 0.1%, from 0.4% in May.
The result, which brought inflation to its lowest level since May 2016, fell short of economists’ expectations in a Reuters poll, which had an average estimate for an inflation rate of 0.4%.
The slower inflation rate was driven by a 9.3% drop in energy prices over 12 months, in line with lower global oil prices, but prices for manufactured goods also declined, falling 1.1%.
Reporting by Leigh Thomas; Editing by Pravin Char