Prices of petroleum products drop again in August

July and August were marked by a drop in oil prices, although the end of the government-issued fuel discount could change this. (Photo: Guy Wolff/Maison Moderne/archives)

July and August were marked by a drop in oil prices, although the end of the government-issued fuel discount could change this. (Photo: Guy Wolff/Maison Moderne/archives)

After months of increases, the cost of petroleum products fell in July and August 2022. But food prices were among those that continued to rise as inflation stabilised at 6.8%, a report by national statistics bureau Statec shows.

In August, the consumer price index rose by 1%, according to Statec. However, if we take out the effect of the end of the summer sales and petroleum products, the figure is +0.4%. The inflation rate thus remains stable at 6.8%.

It is the prices of clothing and footwear that are rising the most, by 13.7% in one month. In one year, clothing prices have increased by 2.2%, and footwear prices have decreased by 4.2%. This is due to the end of the sales period which has had the same effect on furniture prices (+6.6% in one month), jewellery and watches (+6.3%) and household textiles (+5.3%).

Petroleum products drop 5.5% in a month

Prices of petroleum products fell by 5.5%, marking a second consecutive drop after months of increases.

Diesel cost 6.1% less in August than in July, and petrol 8.6% less. Despite this decline, the price of oil-based products remains 36% higher than in August 2021. It remains to be seen whether this will continue with the end of the rebate at the pump.

The fall is offset by other increases, such as package holidays, where the cost is up by 7.3%. The cost of air transport has risen by 21.4% in one month. New cars are also up 0.3% in one month.

Food, 8.3% more expensive than a year ago

Food prices continue to rise, +0.9% in one month, and +8.3% in one year. Cheese (+2.3%), meat (+0.6%), fresh fruit (+2.7%) and oils (+2.9%) show the strongest increase in one month. The same applies to beer (+3.1%). Fresh vegetables lost 1.8% in value in one month.

The half-yearly average of the index linked to the 1.1.1948 base rose from 950.31 to 954.51 points and is slowly approaching the 964.64 points from which an indexation must be triggered.

A tripartite meeting is due to be held shortly to decide the fate of the latter, should it fall by the end of the year--the first increase did take place in April; the second index, which was supposed to be triggered in July 2022, has been postponed to 1 April 2023 by tripartite agreement.

This story was first published in French on Paperjam. It has been translated and edited for Delano.