PARIS (Reuters) – Year-on-year inflation remained stable in September in France, as the acceleration in energy prices was offset by the slowdown in the rise in prices for food, services and manufactured products , according to preliminary data published Friday by INSEE.
The consumer price index (CPI) stood at 4.9% in a first estimate for the twelve months to the end of September, as at the end of August, while analysts polled by Reuters were counting on an acceleration to 5.1%.
Over one month, consumer prices should fall by 0.5%, after an increase of 1% in August.
The consumer price index harmonized according to European HICP standards, which allows comparisons with other countries in the euro zone, was up 5.6% year-on-year at the end of September compared to 5.7%. at the end of August. Economists were counting on 5.9%.
Over one month, the HICP index would fall by 0.6% after +1.1% the previous month, estimates INSEE.
The rebound in oil prices during the summer raised fears that the downward trend in headline inflation could be interrupted.
In September, energy prices rose by 11.5% in France after an increase of 6.8% in August, but food inflation slowed at the same time, particularly in fresh produce.
According to INSEE, food prices increased by 9.6% this month in France after an increase of 11.2% in August.
“Inflation should resume its downward trend in the fall due to major trends currently being observed, such as the fall in production prices (factory output). The pace of this decline will, however, be slowed down by the increase of the price of oil”, observes Sylvain Bersinger, chief economist at Asterès.
In Germany, consumer prices decelerated more markedly than expected in September, to 4.3% year-on-year, while in Spain, inflation accelerated to 3.5% under the effect of the soaring energy prices.
Eurozone inflation figures for this month are due at 09:00 GMT. Economists polled by Reuters expect a slowdown to 4.5% over one year after 5.2% in August.
(Written by Corentin Chappron and Blandine Hénault, edited by Jean-Stéphane Brosse)
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