France's harmonized inflation rate rose by 1.5% year-on-year in September 2024, a decrease from 2.2% in August, according to preliminary data from the national statistics agency INSEE. This figure is also below the expected average increase of 2.0% as forecasted by economists.
The decline in inflation was primarily driven by a significant drop in energy costs, particularly petroleum products. Service prices saw a year-on-year increase of 2.5%, down from 3.0% in the previous month. Meanwhile, prices for manufactured goods experienced a slightly faster decline compared to August.
Food and tobacco prices remained stable, showing no change in their inflation rate. Overall, consumer prices dropped markedly from August levels due to lower energy prices, seasonal reductions in transport and accommodation costs, and a return to normal tariffs post-Olympics, marking the steepest monthly decline since 1990.
In terms of France's own consumer price index (CPI), inflation rose by 1.2% over the year through September, a decrease from the 1.8% reported in August. This data suggests a cooling off in inflationary pressures, which may have implications for economic policy in the eurozone.
Source: Reuters, September 28, 2024.