Paris, 27 September 2024 – The French Harmonised Index of Consumer Prices (HICP) has witnessed a precipitous drop in September 2024, diving to -1.2% from August's modest 0.6%. This marks a significant month-over-month change that has caught many financial analysts off guard.
In August 2024, the HICP indicated a modest inflation rate of 0.6%, reflecting a stable consumer price environment. However, the recent data reveal a stark reversal, with the HICP plunging into negative territory, recording a -1.2% change in September.
The abrupt drop in September's HICP figures, updated on 27 September 2024, indicates emerging deflationary pressures within the French economy. This unexpected shift could have widespread implications for monetary policy and economic strategy moving forward, as France grapples with balancing consumer prices and economic growth. Market participants will be keeping a close watch on ensuing data releases to gauge the full impact of this downward trajectory in consumer prices.
