French preliminary inflation fell more than expected in September By Reuters

By Dagmarah Mackos

(Reuters) – Consumer prices in France rose less than expected in September, helped by a sharp drop in energy costs and particularly oil products, preliminary data from statistics agency INSEE showed on Friday.

France’s harmonized inflation rate, adjusted for comparisons with other eurozone countries, rose 1.5% year-on-year in September, down from 2.2% in August and below the 2.0% average increase expected by economists polled by Reuters.

Prices of services rose 2.5 percent from a year earlier, down from 3.0 percent in August, while prices of manufactured goods fell slightly faster than the previous month, the agency reported.

Food and tobacco price inflation remained steady, rising at the same pace as last month, INSEE said.

Compared to August’s figures, consumer prices fell sharply on lower energy prices, along with seasonal reductions in transport and accommodation costs, a return to normal post-Olympics fares and lower healthcare prices, marking the steepest monthly decline since 1990, the release states.

Inflation as measured by France’s consumer price index (CPI) rose 1.2% in the year to September, down from 1.8% reported in August.