French September Inflation Rate Confirmed at 1%


French consumer prices rose by 1 percent year-on-year in September 2017, matching the preliminary estimate and following a 0.9 percent increase in the prior month. 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 (1.1 percent from 0.6 percent), of which fresh food (1.6 percent from -0.8 percent) and other food (1 percent from 0.8 percent); tobacco (2.4 percent, the same as in August); and services (1 percent from 1.2 percent). In contrast, prices of manufactured products fell 0.5 percent, after a 0.7 percent decline in August.

Annual core inflation, which excludes public sector prices, the most volatile consumer prices and the tax measures, stood at 0.5 percent, as in July and in August.

On a monthly basis, consumer prices declined by 0.2 percent in September, compared with a preliminary reading of 0.1 percent fall and following a 0.5 percent gain in August. This drop mainly came from a seasonal downturn in services prices and, in a lesser extent, from a slight drop in food prices. Energy prices slowed down a little. Contrariwise, manufactured product prices accelerated.

The harmonised index of consumer prices rose by 1.1 percent from the previous year; and decreased by 0.2 percent from the previous month.


Insee l Rida Husna | rida@tradingeconomics.com
10/12/2017 10:33:44 AM