France Inflation

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France: Inflation remains steady in October

November 10, 2010

In October, consumer prices rose 0.1%, which contrasted the 0.1% drop in September. However, annual inflation remained unchanged at September's 1.6% rate, which came in a notch below market expectations of a 1.7% increase. According to the National Statistical Institute (INSEE), the October increase reflected higher prices for services (+0.2% month-on-month) and energy (+0.9% mom). However, the rise was partly offset by lower prices of manufactured products (-0.2% mom). The core inflation index, which excludes more volatile categories such as oil, fruits and vegetables, registered a flat reading. As a result, annual core inflation remained unchanged at the 0.8% rate registered in September. Finally, annual average harmonised inflation (HICP) increased from 1.4% in September to 1.5%.


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