France Inflation Rate Confirmed at 2.2% in October

The annual inflation rate in France stood at 2.2 percent in October of 2018, the same as in the previous month and in line with a preliminary estimate. An increase in energy and services prices was offset by a slowdown in fresh food prices and a larger drop in cost of manufactured products.

Year-on-year, energy prices advanced further to 13.8 percent in October from 12.8 percent in September and services inflation increased to 1.2 percent from 1.1 percent in the prior month. On the other hand, food inflation slowed to 2.2 percent, compared with 2.8 percent in September, mainly due to lower prices of fresh food (7 percent from 11.2 percent). Meanwhile, inflation was steady for tobacco (16.8 percent, the same as in September) and cost fell faster for manufactured products (-0.4 percent from -0.2 percent).

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures increased to 0.8 percent in October from 0.7 percent in September.

On a monthly basis, consumer prices rose by 0.1 percent in October, recovering from a 0.2 percent fall in September and matching the flash estimate. The increase was mainly due to higher energy prices (1.8 percent from 0.9 percent in September). Meanwhile, prices showed no growth for manufactured products (vs 1.3 percent in September) and services (vs -1.5 percent in September). On the other hand, food prices edge down 0.2 percent, due to lower fresh food prices (-1.2 percent from 3.8 percent).

The harmonised index of consumer prices rose by 2.5 percent from the previous year (vs 2.6 percent in September); and went up by 0.1 percent month-over-month (vs -0.2 percent in September).

France Inflation Rate Confirmed at 2.2% in October

Insee | Agna Gabriel |
11/14/2018 8:04:53 AM