France: Inflation accelerates in September
October 13, 2010
In September, consumer prices fell 0.1% over the previous month, which contrasted the 0.2% rise seen in August. Despite the monthly drop, annual inflation rose from 1.4% in August to 1.6%, which was below market expectations of a 1.8% increase. According to the National Statistical Institute (INSEE), the September reading was driven by a drop in the prices for services, which fell 0.8% over the previous month. The drop was only partially offset by the increase in the price of manufactured products (+0.7% mom), due to the end of summer sales. The core inflation index, which excludes more volatile categories such as oil, fruits and vegetables, remained flat in September, taking annual core inflation from August's 0.8% reading to 0.6%. Finally, annual average harmonised inflation (HICP) increased from 1.2% in August to 1.4%.