France Inflation


Inflation hits lowest level in nearly four years

Consumer prices fell 0.1% over the previous month in October, which was slightly above the 0.2% decline recorded in September, but matched market expectations. As the National Statistics Institute (INSEE) reported, the print mainly reflected that higher prices for services were offset by a substantial drop in energy prices and, to a smaller extent, food prices.

Annual inflation edged down from 0.9% in September to 0.6% in October, marking the lowest reading since November 2009. The print fell slightly short of the 0.7% rate the market had expected.

The core inflation index, which excludes more volatile items such as oil, fruit and vegetables, was flat over the previous month and followed a similar flat reading in September. Annual core inflation inched up from September's 0.6% to 0.7% in October.

Annual HICP inflation (based on the harmonized index of consumer prices) decreased slightly to 0.7% (September: 1.0%). Meanwhile, annual average HICP inflation inched down from 1.2% in September to 1.1% in October, which marks the lowest rate in more than three years.

FocusEconomics Consensus Forecast panelists expect HICP inflation to average 1.1% in 2013, which is unchanged from last month's forecast. Next year, panelists project that inflation will average 1.5%, which is also unchanged from last month's estimate.


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France Inflation Chart

France Inflation October 2013

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: National Institute of Statistics and Economic Studies (INSEE).

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