The consumer price index increased by 1.1% year-on-year in France in September, marking a clear slowdown compared to the 1.8% increase recorded in August thanks to the decline in energy, indicated INSEE this Tuesday, October 15. The evolution of the consumer price index was revised down by 0.1 point compared to a first estimate published at the end of September, which established it at 1.2%, specified the National Institute of statistics in a press release.
Inflation was driven downward in September by the 3.3% decline in energy prices (after +0.4%) and the slowdown in services prices (+2.4% after +3. 0%). The prices of manufactured products (-0.3%), food (+0.5%) and tobacco (+8.7%) remained relatively stable over one year in September. Calculated over one month, the consumer price index even fell by 1.2% (after + 0.5% in August), “the largest monthly drop” since 1990, specified the National Institute of the statistic in a press release.
End of holidays and the Olympics
This monthly drop is explained by the drop in prices of services (-2.2%), particularly those of tourist accommodation and the airline sector with the end of the holidays as well as the Olympic and Paralympic Games. The prices of energy and food are also falling, while those of manufactured products are increasing less sharply.
A benchmark indicator at European level, the harmonized consumer price index (HICP) increased by 1.4% over one year in September compared to 2.2% in August. In monthly comparison, it fell by 1.3% after + 0.6% in August. It is the HICP which is closely observed by the European Central Bank (ECB) to determine its interest rates, which could be lowered again on Thursday. In August over a year, the consumer price index fell below the symbolic 2% mark for the first time since August 2021.