French October Inflation Rate Confirmed at 1.1%


French consumer prices rose by 1.1 percent year-on-year in October 2017, matching the preliminary estimate and following a 1 percent increase in the prior month. It was the highest inflation rate since April, as food prices rose further while cost of manufactured products fell at a softer pace.

Year-on-year, upward pressure came from: Energy (4.8 percent from 5.1 percent in September); food (1.5 percent from 1.1 percent), of which fresh food (4.5 percent from 1.6 percent) and other food (1.1 percent from 1 percent); tobacco ( 2.4 percent, the same pace as in September); and services (1 percent, the same pace as in the prior month). In contrast, prices of manufactured products fell 0.3 percent, after a 0.5 percent decline in September.
 
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, August, and in September.
 
On a monthly basis, consumer prices increased by 0.1 percent in October, in line with a preliminary reading and recovering from a 0.2 percent fall in September. This rebound resulted from that in food prices and lesser drop in services prices. Contrariwise, manufactured product prices slowed down sharply after a marked rise in September. Energy prices increased barely less than in the prior month.
 
The harmonised index of consumer prices rose by 1.2 percent from the previous year; and edged up by 0.1 percent from the previous month.
 
 
 
 

INSEE, France l Chusnul Ch Manan| chusnul@tradingeconomics.com
11/15/2017 8:11:13 AM