INSEE downwardly revises French inflation rate

France's annual inflation rate fell to 1.1% in September, revised down from an initial estimate of 1.2% and down from 1.8% in August, according to data released Tuesday by INSEE.

This is the lowest level since March 2021, driven by a sharp decline in energy prices - down 3.3% from 0.4% in August - mainly due to a further decrease in the cost of petroleum products.

Prices for manufactured goods also fell 0.3% from a decline of 0.1%.

In addition, inflation slowed for services to 2.4% versus 3.0%, while costs remained stable for food at 0.5% and tobacco at 8.7%.

On a monthly basis, the CPI fell by 1.3%, beating the flash estimate of a 1.2% decline and marking the largest decline since the series began in 1990.

The decline was driven by seasonal factors, including lower transport and accommodation prices, and the normalisation of prices after the Olympic and Paralympic Games.

The annual harmonised inflation rate in the EU fell to 1.4%, the lowest since March 2021, while the harmonised CPI fell by 1.3% on the month.