French inflation accelerates to 3.1% in September, above forecasts
Energy and fresh food prices drove the increase, according to INSEE, as France's central bank pegs third-quarter growth at just 0.1%
Published
French consumer prices rose 3.1% year-on-year in September, above the 3.0% consensus forecast. The reading marks a pickup from August's 2.4% and from 2.1% in July, according to INSEE.
INSEE said energy prices rose 21.2% year-on-year in September, up from 16.7% in August, driven by higher petroleum product and gas prices. Fresh food prices climbed 9.9%, sharply higher than August's 5.9% rise. Services inflation rose to 2.2% from 1.9%, which INSEE attributed mainly to a smaller seasonal decline in accommodation and transport prices than a year earlier.
The September figure is a downward revision from the preliminary harmonized reading of 3.4% published on September 30, which itself had come in above a Reuters poll average of 3.1%, with forecasts ranging from 2.8% to 3.3%.
Inflation running above forecast complicates the budget arithmetic facing France, where the central bank has estimated third-quarter growth at just 0.1%. The data has moved French bond yields and spreads without spilling into Treasurys or broader risk sentiment, consistent with how French releases have traded through this stretch.