Inflation: Prices up 1% year-on-year in October

SLOWDOWN: Energy prices plunged 5.6%, while food prices rose 1.3%, compared to 1.7% in September

The prices climb, but less than in September. According to the provisional estimate of the National Institute of Statistics and Economic Studies (INSEE) that they published on Friday, consumer prices increased in France by 1% year-on-year in October, but less than in September, when they jumped by 1.2%.

A slowdown which could be explained by a more sustained drop in energy prices, driven by those of gas and petroleum products, and by the slowdown of food prices “, underlines INSEE. Indeed, energy prices plunged by 5.6%, while food prices increased by 1.3%, compared to 1.7% in September. Fresh products fell by 2.2%.

Increase in prices of services

Over one month, however, prices started to rise again, to +0.1%, after a decline of 0.1% in September. “This slight increase in prices could be explained by the increase in the prices of services, particularly those of transport services, and to a lesser extent in the prices of manufactured products”, it is specified in the press release. INSEE notes that conversely, energy and food prices would decrease slightly. Tobacco prices would be stable again over one month.

In detail, the increase in prices of services remains stable compared to September (+ 2.4%), like those of tobacco (+ 4.1%), while “the prices of manufactured products would decrease at a very slight rate more sustained than in the previous month”, -0.5%, adds INSEE.

The harmonized consumer price index (HICP), which allows comparisons at European level, increased by 0.9% in October, after an increase of 1.1% in September. Over one month, it rebounded by 0.1%, after -1.1% the previous month.