France inflation edges up to 1.2% in September as prices fall monthly

France's consumer prices declined on a monthly basis in September, reversing August's increase, though inflation picked up on an annual basis, data from Insee showed Wednesday.

The consumer price index fell 1.0% month-on-month in September, following a 0.4% rise in August, mainly due to a sharp seasonal drop in services prices and in line with the flash reading published on September 30.

Food prices decreased monthly by 0.2%, while manufactured goods prices rose by 0.4%, and tobacco prices remained unchanged. Seasonally adjusted, overall consumer prices were stable.

Year-on-year, the CPI rose 1.2%, up from 0.9% in August, also in line with the flash reading, as services inflation accelerated and energy prices fell at a slower pace.

Prices of services increased 2.4% annually, up from 2.1%, while energy prices dropped 4.4%, a smaller fall than the 6.2% decline in August.

Annual food inflation edged higher to 1.7% from 1.6%, while manufactured goods prices fell further by 0.4% after a 0.3% drop previously. Core inflation rose slightly to 1.3% from 1.2%.

The harmonised index of consumer prices, used for EU comparisons, decreased 1.1% month-on-month and rose 1.1% year-on-year, both confirming provisional estimates published in late September.