French Inflation Rate Slows to 2.2% in September
The French consumer price inflation is set to ease to 2.2 percent year-on-year in September 2018 from the previous month's near 6-1/2-year high of 2.3 percent, a preliminary estimate showed.
9/28/2018 9:30:30 AM
The slight decrease in inflation should come, on the one hand, from a slowdown in services (1.1 percent vs 1.3 percent in August) and energy prices (12.8 percent vs 13 percent) and, on the another hand, from a slightly larger drop in those of manufactured products (-0.2 percent vs -0.1 percent). Meanwhile, food prices are expected to rise at a faster 2.8 percent (vs 2.2 percent in August), driven by fresh food (11.4 percent vs 6.9 percent). Inflation is likely to remain unchanged for both other food products (at 1.4 percent) and tobacco (at 16.8 percent).
On a monthly basis, consumer prices are expected to decline by 0.2 percent in September, following a 0.5 percent rise in August and compared with market expectations of a 0.1 percent drop. The downturn should be due to seasonal declines in the prices of some tourism-related services. Contrariwise, energy prices should rise over one month after a stability in August. Those of manufactured products should accelerate after the end, in August, of the summer sales in the metropolitan area. Lastly, food prices should be more dynamic than in the previous month.
The harmonised index of consumer prices is expected to rise by 2.5 percent from the previous year (vs 2.6 percent in August); and fall by 0.2 percent month-over-month (vs 0.5 percent in August).