French Inflation Rises More Than Forecast

(RTTNews) - French inflation accelerated more than expected in September on energy and fresh food prices, preliminary estimate from the statistical office INSEE showed Wednesday.

Consumer price inflation rose to 3.0 percent from 2.4 percent in August. A similar higher rate was last seen in February 2024. The rate was also above economists' forecast of 2.8 percent.

EU harmonized inflation climbed markedly to 3.4 percent from 2.6 percent in the prior month. The rate was seen at 3.0 percent.

Driven by petroleum products and gas prices, energy prices surged 21.2 percent. Fresh food prices were up 9.9 percent and services inflation rose to 2.2 percent from 1.9 percent. Meanwhile, manufactured product prices dropped 0.3 percent.

On a monthly basis, consumer prices declined 0.3 percent, reversing a 0.7 percent rise in August. Prices were forecast to fall 0.5 percent.

Likewise, the harmonized index of consumer prices slid 0.4 percent, in contrast to the 0.7 percent rise in the prior month. The HICP was also expected to drop 0.5 percent.

Household spending decreased in August, reflecting the falls in energy and food consumption, official data showed today. Household spending was down 0.5 percent, in contrast to the 0.4 percent rise in July.

Household energy expenditure contracted 2.3 percent driven by the downturn in purchases of petroleum products. Similarly, food consumption slid 0.4 percent. Meanwhile, engineered goods spending grew 0.3 percent.

Another data from INSEE showed that producer price inflation in the domestic market advanced to 4.8 percent from 3.5 percent in July. On a monthly basis, producer prices grew 1.0 percent, following July's 1.3 percent increase.