France's consumer price index fell in line with forecasts in September

According to the report from INSEE, in September 2020, the Consumer Price Index (CPI) fell by 0.5% over a month, after –0,1% in August 2020. Service prices declined sharply (–1.5% after +0.3% in August). Those of energy (–0.7% after +0.3%) and food prices (–0.5% after +0.2%) decreased and those of tobacco were stable. Finally, manufactured product prices rebounded strongly (+1.6% after a 1.2% drop in the previous month).

Seasonally adjusted, consumer prices dropped by 0.2% in September, after –0.5% in August.

Year on year, consumer prices were stable, after +0.2% in the previous month. This is the result of a slowdown in service prices and an accentuated decline of those of energy. The prices of tobacco rose less, year on year, than in August (+13.7% after +13.8% in August). Finally, the food prices and those of manufactured product prices evolved at the same rate as in the previous month.

Year on year, core inflation increased, in September, by 0.5% year on year, at the same rate as in the previous month. The Harmonised Index of Consumer Prices (HICP) fell by 0.6% over a month, after –0.1% in the previous month; year on year, it was stable, after +0.2% in August