Financial News: French Inflation Highest In 8 Months; Producer Prices

French Inflation Highest In 8 Months; Producer Prices Fall

09/30/2025 - 04:59:00 (RTTNews)

(RTTNews) - France's consumer price inflation accelerated in September to the highest level in eight months amid a rise in costs for services, a provisional estimate from the statistical office INSEE showed on Tuesday.

A separate official report showed that producer prices decreased slightly in August after rising for the first time in six months in July.

The consumer price index climbed 1.2 percent year-over-year in September, faster than the 1.0 percent rise in the previous month. Economists had expected inflation to rise to 1.3 percent.

Further, this was the highest inflation rate since January, when prices rose 1.7 percent.

Inflation based on services increased to 2.4 percent from 2.1 percent, and the annual price growth in food rose slightly to 1.7 percent from 1.6 percent.

Meanwhile, energy prices dropped 4.5 percent annually in September, versus a 6.2 percent decline in August. Prices for manufactured products were also 0.4 percent less expensive.

On a monthly basis, consumer prices fell 1.0 percent in September, reversing a 0.4 percent rise in August. This downturn was mainly due to sharp seasonal declines in the prices of transport, particularly airfares, and of accommodation services.

EU-harmonized inflation climbed to 1.1 percent from 0.8 percent in the prior month. Monthly, the HICP showed a decrease of 1.1 percent versus a 0.5 percent gain in August.

Household consumption in France rebounded 0.1 percent monthly in August, following a 0.6 percent fall in July. Consumption of engineered goods grew 0.3 percent, while that of food and energy consumption was virtually stable.

In a separate report, the statistical office revealed that industrial producer prices in the home market dropped 0.2 percent month-on-month in August, in contrast to the 0.5 percent increase in the previous month.

Prices for mining, energy, and water products decreased 0.2 percent, and those of manufactured products dropped by 0.3 percent.

On an annual basis, produce price inflation softened to 0.1 percent from 0.5 percent.

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