France’s CPI inflation eases by 1.2% MoM in September ’24

France’s Consumer Price Index (CPI) experienced a significant decline of 1.2 per cent in September 2024, compared to +0.5 per cent in August 2024, marking the steepest monthly fall since the series began in 1990.

According to the National Institute of Statistics and Economic Studies (INSEE),  the drop is attributed to a seasonal decrease in service prices and a continued decline in energy costs.

Service prices fell by 2.2 per cent, driven by a 13.5 per cent reduction in transport costs, particularly air travel, which saw a 24.8 per cent decrease. Accommodation services also dropped by 17.2 per cent, returning to normal levels after the summer holidays and the Olympic and Paralympic Games.

Energy prices decreased by 1.8 per cent, with petroleum products falling by 3.5 per cent.

Food prices saw a slight monthly decrease of 0.3 per cent, while manufactured goods prices rose by 0.5 per cent, though at a slower pace than the previous month. Tobacco prices remained stable.

Year-on-year, the CPI rose by 1.1 per cent, down from 1.8 per cent in August, due to a sharp fall in energy prices and a slowdown in service price increases.

The Harmonised Index of Consumer Prices (HICP) also saw a monthly decrease of 1.3 per cent and a year-on-year fall of 1.4 per cent, down from +2.2 per cent in August.

Energy prices fell sharply by 3.3 per cent year-on-year, with significant declines in petroleum products, electricity, and gas prices.