Very sharp drop in inflation in France in September!

(Boursier.com) — Sharp drop in national inflation in September. According to the provisional estimate made by INSEE at the end of the month, consumer prices would increase by 1.2% in September, after an increase of 1.8% in August, and against a consensus of +1.6 %. This clear drop in inflation can be explained firstly by a decline in energy prices, particularly those of petroleum products. Prices of services should slow down over a year and those of manufactured products should decrease at a slightly more sustained pace than in the previous month. The prices of food and tobacco would increase over one year at the same rate as the previous month, details INSEE. Over one month, consumer prices should decrease by 1.2% after +0.5% in August.

The consumer price index harmonized with European standards should increase by 1.5% over one year (+1.9% consensus), after +2.2% in August. Over one month, it would fall by 1.2% (-0.8% expected) after +0.6% the previous month.