France Inflation


Inflation quickens in October

In October, consumer prices rose 0.2% over the previous month, contrasting the 0.1% drop recorded in September. As a result, annual inflation inched up to 2.3%, the highest level since October 2008, and was in line with market expectations. According to the National Statistical Institute (INSEE), the October reading reflected a notable increase in prices for food and non-alcoholic beverages, as well as higher prices for services. The core inflation index, which excludes more volatile categories such as oil, as well as fruit and vegetables, rose 0.2% in October, contrasting the flat reading in September. Annual core inflation rose from 1.1% in September to 1.3% in October. Finally, annual average HICP inflation (based on the harmonized index of consumer prices) inched up to 2.2%, the highest level since April 2009.


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