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French prices plunge in July, sparking deflation fears

The national statistics office INSEE says consumer price index fell by 0.3% last month amid wider fears of deflation across Eurozone.

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French prices dropped sharply in July compared to the previous month, official data published on Wednesday showed, adding to fears of deflation in France and the wider eurozone, reports Yahoo! Finance.

Prices fell by 0.3 percent month-on-month in July, the INSEE national statistics office said in a statement.

On a year-on-year basis, prices rose by 0.5 percent, the same as the previous month.

INSEE said the dip in prices could be partly put down to summer sales.

Earlier this month, French Prime Minister Manuel Valls said there was a real risk of deflation in the eurozone, sparked by sluggish growth.

Read more of this AFP report published by Yahoo! Finance.

Read Mediapart's analysis of the French government's deflation fears here.