HomeEconomyInflation slows in September, to 5.6% annual compared to 5.9% in August

Inflation slows in September, to 5.6% annual compared to 5.9% in August

Despite the acceleration in the rise in food prices, inflation fell to 5.6% annually in September. This evolution is due, in particular, to the slowdown in the increase in the prices of energy and services.

The rise in consumer prices in France slowed to 5.6% year-on-year in September, from 5.9% in August, INSEE reported on Friday, confirming its first estimate. This slowdown is due to the “slowdown in the prices of services (+3.2% compared to 3.9%) and energy (+17.9% compared to 22.7%)”, specifies the National Institute of Statistics.

But the increase in food products, to which the poorest households spend a greater part of their income, accelerated in one year, from 7.9% in August to 9.9% in September. Manufactured goods gains were flat, with the annual rate of increase falling from 3.5% to 3.6%.

IPC fell 0.6% monthly

In one month, the consumer price index finally fell by 0.6%, compared to 0.5% in the first estimate made at the end of September. This fall in the price level compared to August is a consequence, in particular, of a contraction in the prices of services (-1.5%) “due to the more pronounced seasonal decrease than last year in the prices of certain services related to tourism”, details the INSEE in its press release.

Still more than a month away, energy prices for their part fell for the third consecutive month, but the fall (-2.6%) was less pronounced than in August (-3.9%), despite the entry effective on September 1 of a temporary discount of 30 cents. in a liter of fuel at the pump. The increase in the prices of manufactured products slowed down to 0.9% in one month, compared to 1.8% in August, as well as that of food (+1.1% compared to 1.7%).

Just a temporary slowdown

Finally, the harmonized consumer price index (HICP), which serves as a basis for comparison at a European level, confirmed an increase of 6.2% in one year and a decrease of 0.5% in one month.

In the opinion of the government and most economists, this slowdown in inflation in France is only temporary. A sustained decline is not expected before the second quarter of 2023.

Author: TT with AFP
Source: BFM TV

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