Prices increased by 1.2% over one year in France in September, a sharp decline compared to inflation of 1.8% recorded in August, INSEE indicated on Friday in a first estimate.
The slowdown in inflation is explained both by the slowdown in the rise in prices of services (2.5% year-on-year in September after 3% in August) and the decrease in energy prices (-3 .3%) and manufactured products (-0.3%), details the National Institute of Statistics and Economic Studies.
The cost of food products (+ 0.5% over one year) and tobacco (+ 8.7%) has evolved at the same rate as in August, according to this provisional estimate which will have to be confirmed mid -october.
Below 2%
The consumer price index (CPI) therefore remains for the second month in a row below the European Central Bank’s inflation target, set at 2%.
A benchmark indicator at European level, the harmonized consumer price index (HICP) also fell below the symbolic 2% mark, to 1.5% over one year in September compared to 2.2% in August.
Over one month, the consumer price index fell by 1.2% in September. This is “the strongest monthly drop in prices since the start of the series (statistical) in 1990”, underlines INSEE.
Energy and transport
“The seasonal effect of the fall in transport prices (air in particular) and accommodation services, add in particular the marked drop in energy prices, the return to normal of certain prices after the Olympic and Paralympic Games and the drop in the price of health services”, list the national statisticians.
“Conversely, the prices of manufactured products would increase over one month, driven by the increase in the prices of clothing and shoes,” adds INSEE.
In its latest economic report, published at the beginning of September, INSEE forecast that the consumer price index would reach 1.6% over one year in December 2024.
