The slowdown in inflation was caused by a slowdown in the rise in prices of services (2.5% year-on-year in September after 3% in August) and a decline in prices for energy (-3.3%) and manufactured products (-0.3%), details of the National Institute of Statistics and Economic Studies.
Prices of food products (+0.5% over the year) and tobacco (+8.7%) have grown at the same rate as in August, according to provisional estimates that should be confirmed in mid-October. Therefore, the consumer price index (CPI) remained below the European Central Bank’s inflation target for the second month in a row, set at 2%.
Household consumption is increasing
In addition, consumption of household goods increased by 0.2% in August compared to the previous month, mainly driven by increased food consumption, INSEE said.
