Key facts
- French harmonized inflation rate rose to 3.4% year-on-year in September.
- This is higher than the 2.6% recorded in August.
- Energy prices were the primary driver of the inflation increase.
- The domestic consumer price index rose 3.0% year-on-year in September.
- The harmonized index fell 0.4% on a monthly basis in September.
French consumer prices increased more than anticipated in September, with preliminary data from the INSEE statistics agency indicating a harmonized inflation rate of 3.4% year-on-year. This figure represents an acceleration from the 2.6% recorded in August, primarily driven by a surge in energy prices, including petroleum products and gas.
The domestic consumer price index also saw an uptick, rising to 3.0% year-on-year in September, surpassing the 2.8% forecast and up from 2.4% in August. Services inflation edged higher, with a less pronounced seasonal fall in accommodation and transport prices compared to the previous year. Food prices also accelerated, influenced by fresh produce, while the decline in manufactured goods prices eased.
On a monthly basis, the harmonized index decreased by 0.4% in September, which was less of a decline than the -0.5% forecast by Reuters, and contrasted with a 0.7% gain in August. Analysts had, on average, expected a harmonized inflation rate of 3.1%, with estimates ranging from 2.8% to 3.3%.