Inflation over one year slows further in September 2024, to 1.2%, according to INSEE

After slowing to 1.8% in August, provisional data from the National Institute of Statistics and Economic Studies (Insee) show a slowdown in inflation over one year, to 1.2%, in September 2024.”This clear drop in inflation could be explained firstly by a decline in energy prices, particularly those of petroleum products.“, contextualizes INSEE indicating that food prices are increasing at the same rate as the previous month (+0.5%).

One-month deflation in September and return to normal post-Olympics

While deflation is confirmed and accentuated on PGC-FLS in September 2024, according to the Circana barometer carried out for LSA, INSEE also notes a drop in prices. “Over one month, consumer prices should decrease by 1.2% in September 2024 (after +0.5% in August)“, explains the institute. This would be the biggest drop in prices in one month since… 1990!

This drop in prices is explained by the reduction in transport prices, particularly air fares, and accommodation, as is often the case after summer. Energy prices have also fallen sharply, as have some rates which return to normal after the Olympic and Paralympic Games. Health services are also cheaper. Conversely, the prices of clothing and shoes continue to rise, while those of tobacco remain almost stable.