France’s harmonized inflation rate saw a significant decline in September, falling to 1.5%, down from 2.2% in August, according to preliminary data from the National Institute of Statistics and Economic Studies (Insee). This drop in the Harmonized Index of Consumer Prices (HICP) was below the 2.0% forecast by economists surveyed by Reuters and could increase pressure on the European Central Bank to implement economic stimulus measures.
The fall in inflation is largely attributed to a significant decrease in energy prices, particularly petroleum products, and a seasonal drop in transport costs. In addition, the return to normal pricing after the Olympic and Paralympic Games also contributed to the lower inflation rate.
France’s Consumer Price Index (CPI) also fell sharply, coming in at 1.2% in September, down from 1.8% in August. This further reflects the cooling inflationary pressures in the eurozone’s second-largest economy.
