French September Inflation Rate at 5-Month High of 1%


French consumer prices are expected to rise by 1 percent year-on-year in September 2017, following a 0.9 percent increase in the prior month, the preliminary estimate showed. It was the highest inflation rate since April, as cost increased further for both energy and food while manufactured product prices fell at a softer pace.

Year-on-year, upward pressure came from: Energy (5.1 percent from 4.8 percent in August); food (1 percent from 0.6 percent), of which fresh food (1.4 percent from -0.8 percent) and other food (0.9 percent from 0.8 percent); tobacco (2.4 percent, the same as in August); and services (1.1 percent from 1.2 percent). In contrast, prices of manufactured products fell 0.4 percent, after a 0.7 percent decline in August.

On a monthly basis, consumer prices are expected to decline by 0.1 percent in September, after a 0.6 percent gain in August. This decline should mainly come from a seasonal rebound in services prices, essentially those of tourism-related services. Moreover, food prices should fall after a stability in the previous month. Energy prices should slow a little, the stability in gas and electricity prices moderating a sharp rise in the prices of petroleum products. On the other hand, manufactured product prices should accelerate after a seasonal rebound in August.

The harmonised index of consumer prices is expected to rise by 1.1 percent from the previous year; and decrease by 0.1 percent from the previous month.

Insee l Rida Husna | rida@tradingeconomics.com
9/29/2017 10:51:38 AM