According to the preliminary report from INSEE, consumer prices rose by 0.2% in October after falling by 1.2% in September (revised from -1.3%). Economists also expected an increase of 0.2%. This slight increase was caused by the rise in prices of energy (mainly those of petroleum products and gas), prices of manufactured products (particularly those of clothing and footwear), prices of services (particularly those of transport), and prices of food (notably fresh products).
In annual terms, CPI rose by 1.2% after increasing by 1.1% in September. Economists had expected an increase of 1.1% per annum. The latest change was due to a slowdown in prices of services and a less marked year-on-year fall in those of energy than in September. Over a year, the prices of manufactured products, food and tobacco moved at rates similar to those of the previous month.
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 0.3% on a monthly basis and by 1.5% per annum. In September, HICP fell by 1.3% m/m and rose by 1.4% per annum.