France Inflation Rate Confirmed at 2.2% in September


France's annual inflation rate fell to 2.2 percent in September 2018 from a 2.3 percent near 6-1/2 year high in August, unchanged from the preliminary estimate, and in line with market expectations. Inflation slowed for both services and energy, while manufactured products deflation deepened.

Prices eased slightly for both energy (12.8 percent from 13 percent in August) and services (1.1 percent from 1.3 percent) while manufactured products prices fell further than in a month earlier (-0.2 percent from -0.1 percent). Meanwhile, food prices went up at a faster 2.8 percent (vs 2.2 percent in August), driven by fresh food (11.2 percent vs 6.9 percent). Also, inflation was steady for both other food products (at 1.4 percent) and tobacco (at 16.8 percent). 

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

On a monthly basis, consumer prices dropped by 0.2 percent in September, reversing from a 0.5 percent rise in August and matching market expectations. The downturn came from a seasonal decrease in services prices (-1.5 percent from 0.3 percent). In contrast, manufactured products prices rose faster (1.3 percent from 1.1 percent) after the end of summer sales in August in the metropolitan area. Also, food cost accelerated (0.6 percent from 0.3 percent) and energy prices went up by 0.9 percent after being unchanged in August.
 
The harmonised index of consumer prices rose by 2.5 percent from the previous year (vs 2.6 percent in August); and declined by 0.2 percent month-over-month (vs 0.5 percent in August).

France Inflation Rate Confirmed at 2.2% in September


INSEE, France l Chusnul Ch Manan | chusnul@tradingeconomics.com
10/11/2018 8:19:14 AM