Consumer prices increased by 1.2% in September year-on-year, after 1.8% in August, thanks to the slowdown in service prices and the drop in energy prices.
Prices increased by 1.2% over one year in France in September, a sharp decline compared to the inflation of 1.8% recorded in August, INSEE indicated this 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%) evolved at the same rate as in August, according to this provisional estimate which must be confirmed mid -october. The consumer price index (CPI) therefore remains for the second month in a row below the inflation target of the European Central Bank, set at 2%.
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Return to normal of certain prices after the Olympics
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 (statistics, Editor’s note) in 1990”, underlines INSEE.
“To the seasonal effect of the drop in the price of transport (notably air) and accommodation services, we must add in particular the marked drop in energy prices, the return to normal of certain prices after the Games Olympic and Paralympic Games and the fall 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 predicted that the consumer price index would reach 1.6% over one year in December 2024.
