In September, France experienced a more significant easing of consumer price inflation than initially anticipated, reaching the lowest rate in three-and-a-half years due to reduced energy costs, according to the latest figures from the national statistics office, INSEE, released on Tuesday.
The consumer price index saw a year-over-year increase of 1.1% in September, a deceleration from August's 1.8% rise. Initial projections had pegged the inflation rate at 1.2%.
This marks the most subdued inflation rate since March 2021, when prices had similarly risen by 1.1%.
Energy prices declined annually by 3.3% in September, contrasting with a 0.4% increase in August. This decrease was primarily driven by a significant 14.2% drop in petroleum product prices.
Inflation in the services sector slowed to 2.4% from the previous 3.0%. Conversely, food inflation remained stable at 0.5%, while prices for manufactured goods decreased by 0.3%.
On a month-to-month basis, consumer prices fell by 1.2% in September, counteracting a 0.5% increase in August, aligning with previous estimates.
EU-harmonised inflation also lessened to 1.4% from 2.2% in the month before. This latest figure was adjusted from an earlier estimate of 1.5%. Monthly, the Harmonized Index of Consumer Prices (HICP) decreased by 1.2%, confirming the initial projections.
