According to INSEE, inflation slowed significantly in September, to 1.1% on a year

2024-10-15 07:30:00

This new estimate confirms the one published at the end of September, which set inflation at 1.2%. These data mark a clear slowdown compared to the 1.8% increase recorded in August.

The consumer price index rose 1.1% year-on-year in France in September, marking a sharp slowdown from the 1.8% rise recorded in August, thanks to a decline in the energy sector, it said INSEE on Tuesday. The evolution of the consumer price index has been revised downwards by 0.1 points compared to a first estimate published at the end of September, which set it at 1.2%, the National Institute of Statistics.

Inflation was pushed downwards in September by the 3.3% drop in energy prices (after +0.4%) and the slowdown in service prices (+2.4% after +3.0%) . Prices of manufacturing products (-0.3%), food (+0.5%) and tobacco (+8.7%) remained relatively stable on a year-on-year basis in September. Calculated over a month, the consumer price index actually fell by 1.2% (after +0.5% in August), “the largest monthly decline” since 1990, the government specified in a statement. National Institute of Statistics.

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According to INSEE, inflation slowed significantly in September, to 1.1% on a year

The decline in service and energy prices explains this dynamic

This monthly decline is explained by the drop in service prices (-2.2%), in particular those of tourist accommodation and the airline sector with the end of the holidays as well as the Olympic and Paralympic Games. Energy and food prices also fell, while those of manufacturing products rose less sharply. A European-wide benchmark, the harmonized index of consumer prices (HICP) increased by 1.4% year-on-year in September compared to 2.2% in August. In the monthly comparison it fell by 1.3% after +0.6% in August.

It is the IPCA that is being watched closely by the European Central Bank (ECB) to determine its interest rates, which could be lowered again on Thursday. In August, in the space of a year, the consumer price index fell below the symbolic threshold of 2% for the first time since August 2021.