French September Inflation Rate Confirmed at 4-Month Low


France's annual inflation rate was confirmed at 0.9 percent in September 2019, the lowest since May and below August's 1.0 percent, amid a slowdown in the prices of food and energy.

Food prices increased at a softer pace (2.1 percent vs 3.1 percent in August), particularly fresh products (2.0 percent vs 8.5 percent) amid a sharp slowdown in the prices of fresh vegetables (2.6 percent vs 16.8 percent). Also, energy cost slowed (0.2 percent vs 0.8 percent), as prices continued to fall for petroleum products (-2.6 percent vs -1.9 percent) and gas (-3.4 percent vs -2.2 percent). 

On the other hand, services prices advanced faster (1.2 percent vs 1.1 percent), as communication cost rebounded (0.9 percent vs -0.5 percent) while prices of “other services” accelerated (1.7 percent vs 1.4 percent). In contrast, transport prices rose less (0.8 percent vs 1.3 percent) while health services cost dropped further (-0.3 percent vs -0.1 percent). At the same time, manufactured prices dropped at a softer rate (-0.7 percent vs -0.9 percent), mainly clothing & footwear (-1.2 percent vs -1.4 percent). 

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, increased to 0.9 percent in September from 0.7 percent in the previous month. 

On a monthly basis, consumer prices fell 0.3 percent in September, after a 0.5 percent rise in the previous month as cost decreased for services (-1.3 percent vs 0.4 percent in August) and food (-0.5 percent vs 0.5 percent). In contrast, prices went up faster for manufactured products (1.5 percent vs 0.9 percent) and energy (0.3 percent vs a flat reading).

The harmonized index of consumer prices increased by 1.1 percent from the previous year, following a 1.3 percent rise in August, while it fell by 0.4 percent month-over-month (vs 0.5 percent in August).

French September Inflation Rate Confirmed at 4-Month Low


INSEE | Rafael Gonzalez | rafael.gonzalez@tradingeconomics.com
10/15/2019 7:19:45 AM