Inflation Accelerates in October: Prices Rose by 6.2% Over One Year

Finance
Inflation rises in France by 6.2 percent

This rebound in inflation would be due to the acceleration in the prices of energy, food, and manufactured goods. Unheard of since June 1985.

The rise in consumer prices in France accelerated again in October, to 6.2% over one year, after two months of slowdown, according to provisional data published this Friday by INSEE. This rebound in inflation would be due to the acceleration in the prices of energy, food, and manufactured products, specifies the National Institute of Statistics and Economic Studies in a press release.

We have to go back to June 1985, the month during which a price increase of 6.4% over one year was recorded, to find a level of inflation higher than this first estimate. Last July, inflation had already reached 6.1% over one year, before slowing down in August (5.9%) and September (5.6%).

+ 16.9% for fresh products

The increase in food products, to which the most modest households devote a larger share of their income, was particularly strong in October, at 11.8% over one year and even 16.9% for fresh products.

Energy prices for their part increased by 19.2% against 17.9% in September, despite the extension of the rebate at the pump by the government.

Manufactured goods increased by 4.2% while the prices of services (3.2%) and tobacco (0.3%) increased at the same rate as the previous month.

Over one month, consumer prices should increase by 1.0%, after -0.6% in September.

Still, over one month, energy prices should rebound in the wake of oil product prices. Those services should be stable, while food prices should accelerate and those of manufactured goods should slow down slightly.

Same in November and December?

Over one year, the harmonized consumer price index (HICP), which serves as a basis for comparison at European level, should increase by 7.1%, after a rise of 6.2% in September. Over one month, it should rebound by 1.3%, after -0.5% the previous month. In its economic report at the beginning of October, INSEE had indicated that it expected a slight slowdown in inflation in October before a rebound in November and December with the end of the discount at the pump on fuels. The resumption of acceleration was finally faster according to the first estimate. A final estimate should be published in mid-November by INSEE.

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