Consumer prices increased by 1.2% in France in October in a year, INSEE announced on Thursday, October 31, after an increase of 1.1% in September, a “quasi-stability” according to the Institute.
In one month, according to these provisional estimates, prices increased by 0.2% in October after a fall of 1.2% in September. The harmonized consumer price index, which allows comparisons between European countries, increased by 1.5% in October after 1.4% in September.
There “quasi-stability” October, INSEE specifies in its provisional estimate, results “a slowdown in service prices and a less marked fall in energy prices in a year than in September”while the prices of manufactured products, food and tobacco are presented at annual rates close to those of September.
Inflation of 4%, a year ago
Over a month, the slight increase in prices would be related to the increase in energy prices (mainly those of oil and gas products), the prices of manufactured products (in particular, those of clothing and footwear), prices of services (especially transport) and prices of food (especially fresh products). Tobacco prices should remain stable compared to September.
In October 2023, annual inflation was still 4%, recalls INSEE.
The European Central Bank has recently eased its monetary policy, with three interest rate cuts since June. Inflation in France is now significantly below the 2% target favored by the institution.
In September, it was 1.7% in the euro zone, prompting Bank of France Governor François Villeroy de Galhau to say this month that “The risk of not definitively reaching our objective from below now exists as much as the risk of exceeding it” : Inflation below 2% is considered detrimental to economic growth.
