Good news for the purchasing power of French households, inflation continues to slow down. 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.
In detail, the slowdown in inflation can be explained both by the slowdown in the rise in prices of services (2.5% over one year in September after 3% in August) and the decrease in prices of energy (-3.3%) and manufactured products (-0.3%), points out the National Institute of Statistics and Economic Studies. The cost of food products (+0.5% over one year) and tobacco (+8.7%) has, for its part, evolved at the same rate as in August, according to this provisional estimate which will have to be confirmed in mid-October.
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Over one month, the consumer price index fell by 1.2% in September. It is “ the strongest monthly drop in prices since the start of the series (statistics, editor’s note) in 1990 », underlines INSEE.
« In addition to the seasonal effect of the drop in the price of transport (notably air) and accommodation services, there is in particular the marked drop in energy prices and the return to normal of certain prices after the Olympic Games. and Paralympics and the drop in the price of health services », list the national statisticians.
« Conversely, the prices of manufactured products should increase over one month, driven by the increase in the prices of clothing and shoes. », adds INSEE.
Furthermore, 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.
As for French households, household consumption increased by 0.2% in August compared to the previous month, driven in particular by an increase in food consumption, INSEE also indicated on Friday. Food consumption, which had suffered from high inflation which has now calmed down, accelerated in August, increasing by 0.8% after an increase of 0.2% in July, while energy consumption slowed down (+0.2 % after +0.9%) and that that of manufactured goods continued to decline (-0.4% after -0.3%), detailed the institute.
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Below the symbolic bar of 2%
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%. 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.
The ECB has already ratified a cycle of loosening of its monetary policy in view of the inflation figures in the euro zone (2.2% over one year in August). After making an initial reduction of 0.25 percentage points in these key rates in June, the European Central Bank reiterated a further reduction of 0.25 percentage points in mid-September. The deposit rate rose to 3.5% on September 18 while the refinancing rate and marginal lending facility rate stood at 3.65% and 3.90%, respectively.
(With AFP)
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