According to the final report from INSEE, in October consumer prices rose by 0.1%, as expected, after declining by 0.5% in September. This increase is mainly due to the rebound in the prices of services (+0.3% after -1.6% in September), notably those of transports (+4.1% after -11.6%). The prices of manufactured products slowed down (+0.2% after +0.7%). Those of energy decreased over one month (-0.5% after +2.0%) notably those of petroleum products (-1.7% after +3.2%). The prices of food were stable over one month (+0.0% after -0.3%).
In annual terms, CPI rose by 4.0% (the lowest rate since February 2022) after rising by 4.9% in September. This decrease of inflation resulted from the strong slowdown in energy prices (+5.2% after +11.9%) and a further slowdown of the prices of food (+7.8% after +9.7%) and manufactured products (+2.2% after +2.8%). The prices of services accelerated (+3.2% after +2.9%). The inflation in tobacco was stable, compared to the previous month (+9.9%).
Meanwhile, the core CPI grew by 4.2% per annum, slowing down compared to September (4.6% per annum). Still, both the headline and core gauges remained well above the European Central Bank's target of 2%.
The data also showed that in October, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in France with inflation in European countries - rose by 0.2% on a monthly basis and by 4.5% per annum. In September, HICP fell by 0.6% for the month and rose by 5.7% per annum.