According to the preliminary report from INSEE, consumer prices fell by 1.2% in September, offsetting the July increase (+0.5%), and recording the sharpest decline since the series began in 1990. Economists had expected a decrease of 0.7%. In addition to the seasonal effect of the fall in transport prices (particularly passenger transport by air) and accommodation services, there was a significant drop in energy prices, the return to normal of certain tariffs following the Olympic and Paralympic Games, and the fall in the price of healthcare services. Meanwhile, prices of manufactured goods rose compared to August, driven by higher clothing and footwear prices.
In annual terms, CPI rose by 1.2% (the lowest reading since July 2021) after increasing by 1.8% in August. Economists had expected an increase of 1.6% per annum. The decrease in inflation is mainly due to falling energy prices, especially for petroleum products. The growth in prices of services slowed, while the fall in prices of industrial goods accelerated compared to August.
The data also showed that in September, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in France with inflation in European countries - fell by 1.2% on a monthly basis and rose by 1.5% per annum. In August, HICP increased by 0.6% m/m and by 2.2% per annum.