Inflation slowed sharply in September, marking a clear decrease compared to the month of Augustaccording to data published this Friday by INSEE. The institute attributes the decline to several factors, including slowing service prices and falling energy and health care costs. At the same time, household consumption increased. Year-on-year, consumer prices rose 1.2% in September, compared to 1.8% in August.
Inflation falls in September
Prices increased by 1.2% in September year-on-year in Francemarking a decline compared to the 1.8% inflation observed in August, reports INSEE. This slowdown is explained in particular by the moderation in the increase in prices of services, which went from 3% in August to 2.5% in September, as well as by the drop in energy prices (-3.3%). ) and manufactured products (-0.3%). On the other hand, the prices of food (+ 0.5%) and tobacco (+ 8.7%) continue to progress at the same pace as the previous month.
According to the Bank of France, consumer prices increased by 2.3% in July 2024putting increased pressure on the budgets of French households. This pressure can also be exerted by the monthly payments of various loans, when a household must repay several loans at the same time and the remaining life is dwindling.
Solutions such as credit consolidation or repurchase are offered by banking establishments. The idea is then to lower the amount of monthly loan payments by grouping the loans into one, by spreading out the repayment period (the total cost of the operation is therefore greater).
Household consumption on the rise
Household consumption of goods increased by 0.2% in August compared to July, according to INSEE, largely thanks to a resumption of food purchases. After being slowed down by inflation, now in decline, food consumption increased by 0.8% in August, compared to 0.2% in July. On the other hand, energy consumption slowed down (+ 0.2% after + 0.9%) and that of manufactured goods continued to decline (- 0.4% after – 0.3%), said the National Institute of Statistics.
Source: INSEE. September 2024.
Lower prices for energy and health services
The harmonized consumer price index (HICP) fell to 1.5% year-on-year in September, compared to 2.2% in Augustthus crossing the 2% mark, according to the INSEE report. Over one month, the consumer price index fell by 1.2%, recording the largest monthly drop since records began in 1990, according to INSEE.
In its economic report published at the beginning of September, the institute anticipated that this index would reach 1.6% over one year in December 2024.
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