France Inflation

France

France: Inflation remains steady in September

October 12, 2011

In September, consumer prices dropped 0.1% over the previous month, contrasting the 0.5% increase recorded in August. As a result, annual inflation remained unchanged at August's 2.2%, the highest level since October 2008. According to the National Statistical Institute (INSEE), the September reading reflected a notable drop in prices for services at the end of the summer period, which offset higher energy prices. The core inflation index, which excludes more volatile categories such as oil, as well as fruit and vegetables, was unchanged in September, contrasting the 0.4% increase in August. Annual core inflation, however, inched down from 1.2% in August to 1.1% in September. Finally, annual average HICP inflation (based on the harmonized index of consumer prices) inched up to 2.1%, the highest level since April 2009.


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