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France: slowdown in inflation to 5.6% in September confirmed

2022-10-14T09:48:42.233Z


This fall in the level of prices compared to August results in particular from a contraction in the prices of services, indicates INSEE.


The rise in consumer prices in France slowed to 5.6% year on year in September, against 5.9% in August, INSEE reported on Friday, confirming its first estimate.

This deceleration is due to the "slowdown in the prices of services (+ 3.2% after 3.9%) and energy (+ 17.9% after 22.7%)", specifies the National Institute of Statistics .

But the increase in food products, to which the poorest households devote a larger share of their income, accelerated over one year, rising from 7.9% in August to 9.9% in September.

Prices of manufactured goods remain stable

Increases in manufactured goods have remained stable, with the annual rate of increase dropping from 3.5% to 3.6%.

Over one month, the consumer price index finally fell by 0.6%, against 0.5% during the first estimate made at the end of September.

This fall in the level of prices compared to August is the result in particular of a contraction in the prices of services (-1.5%) "due to the seasonal decline more marked than last year in the prices of certain services linked to the tourism", details INSEE in its press release.

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Still over one month, energy prices for their part fell for the third consecutive month, but the decline (-2.6%) was less pronounced than in August (-3.9%), despite the entry effective September 1 of a temporary discount of 30 cents on a liter of fuel at the pump.

The rise in prices of manufactured products slowed to 0.9% over one month, against 1.8% in August, as well as that of food (+ 1.1% after 1.7%).

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Finally, the harmonized consumer price index (HICP), which serves as a basis for comparison at European level, is confirmed up by 6.2% over one year and down by 0.5% over 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.

Source: leparis

All business articles on 2022-10-14

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