French Preliminary Inflation Drops More Than Expected in September, Reports Reuters

By Dagmarah Mackos

French consumer prices increased less than expected in September, primarily due to a significant drop in energy costs, especially for petroleum products, according to preliminary data from the national statistics agency, INSEE.

The harmonized inflation rate in France, which allows for comparison with other eurozone countries, rose by 1.5% year-on-year in September, a decrease from 2.2% in August and below the anticipated average increase of 2.0% based on economist forecasts.

Service prices experienced a year-on-year rise of 2.5%, a slowdown from the previous month’s rate of 3.0%. Meanwhile, prices for manufactured goods fell slightly faster than in the month before, as reported by the agency.

Inflation rates for food and tobacco remained stable, increasing at the same pace as the prior month, according to INSEE.

In comparison to August figures, consumer prices saw a notable decline attributed to lower energy prices, seasonal reductions in transportation and accommodation costs, the return to standard tariffs following the Olympics, and decreased healthcare prices. This marked the steepest monthly decline observed since 1990.

Inflation, as measured by France’s consumer price index (CPI), rose by 1.2% over the year through September, down from the 1.8% reported in August.