French consumer price inflation eases to 1.0% in October

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French consumer price inflation abated in October, preliminary figures on Friday showed, as energy prices saw a "more pronounced decline".


According to Insee, consumer prices rose 1.0% on-year in October, easing from a 1.2% climb in September.


"This slowdown in prices is attributed to a more pronounced decline in energy prices, driven by lower gas and petroleum product prices, and a slowdown in food prices. Service prices are expected to increase at the same rate as in September, as are tobacco prices, while manufactured goods prices are projected to fall at a slightly faster pace than in the previous month," Insee said in its preliminary consumer price index report.


On-month, consumer prices rose 0.1% in October, after falling 1.0% in September from August.


"This slight increase is attributed to higher service prices, particularly transportation services, and to a lesser extent, manufactured goods prices. Conversely, energy and food prices are expected to decline slightly. Tobacco prices are projected to remain stable month-on-month," Insee added.


On a harmonised basis, allowing for EU-wide comparison, consumer prices rose 0.9% annually in October, abating from September's 1.1% increase. The October reading was shy of the FXStreet cited consensus of 1.0%.


On-month, harmonised prices rose 0.1% in October, after a 1.1% slump in September from August.