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- French consumer price growth slowed in September
French consumer price growth slowed in September
According to the report from Insee, over a year, the Consumer Price Index (CPI) should increase by 0.9% in September 2019, after +1.0% in the previous month, according to the provisional estimate made at the end of the month. This slight drop in inflation should result from a slowdown in energy and food prices, partly offset by an acceleration in services prices and a lesser drop in manufactured goods prices. Tobacco prices should increase at the same pace as in August 2019.
Over one month, consumer prices should fall back (–0.3%, after +0.5% in August). Services prices should contract sharply, due to the seasonal downturn in the prices of certain tourism-related services. Food prices should drop after a 0.5% rise in the previous month. Contrariwise, those of manufactured goods should gather pace and energy prices should increase after a stability in August. Finally, tobacco prices should be stable.
A separate report from Insee showed that in August 2019 household consumption expenditure on goods was stable in volume* (+0.0% after +0.4%). The increase in manufactured good spending (+1.1%) was offset by a drop in food purchases (–0.9%) and energy consumption (–1.3%).
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