13 November 2014

2014- n° 257

Consumer prices remained stable in October 2014; they rose by 0.5% year-on-year Consumer price index - final results - October 2014

The Consumer Prices Index (CPI) was stable in October 2014, after a decline by 0.4% during the previous month. Seasonally adjusted, it also remained unchanged after a decrease by 0.1% in September. Year-on-year, the CPI grew by 0.5% in October 2014, up from September (+0.3%). Excluding tobacco, the CPI increased by 0.4%, year-on-year.

The stability of the CPI in October masked divergent moves across the different items of consumption: food prices were again on the rise, due to unprocessed fresh foodstuffs while, seasonally, service prices were slightly up. Conversely, the prices of manufactured products declined in October and those of energy, especially those of petroleum products, went on falling.

In October 2014, food prices rose again, increasing by 0.4% as in September. They were almost stable year-on-year in October 2014 (—0.1%, up from —0.6% in September). Their increase was broadly due to a new large rise in the prices of fresh foodstuffs (+3.6% in October after +4.9% in September; +1.5% year-on-year). In particular, the seasonal increase in fresh fruit prices in October (+8.6%; —1.7% year-on-year) was compounded by an upturn in those of fresh vegetables (+0.5%; +4.9% year-on-year). Excluding unprocessed products, food prices continued declining; they diminished by 0.1% in October (after —0.2% in September) and by 0.4% year-on-year, as in August and September 2014.

In October 2014, service prices rose slightly (+0.1%; +1.5% year-on-year as in September) due to the seasonal increase of the prices of housing and dwelling services (with the application of winter rates for collective heating), air fares (+3.0%; 0% year-on-year) and package holidays (+6.5%; +0.6% year-on-year). On the

other hand, prices of restaurant and hotel services decreased seasonally in October (—0.4%; +2.6% year-on-year) as well as rents of vacation residences (—8.9%; +1.8% year-on-year). Moreover, telecommunication tariffs remained almost stable during the last months. In addition, service charges for insurance decreased again in October (-0.8% after —1.0% in September; +2.4% year-on-year) due to promotion campaigns.

In October 2014, prices of manufactured products went down by 0.2% (—0.8% year-on-year). Seasonally, prices of plants and flowers fell in October (—6.6%; +1.9% year-on-year). Prices of clothing and footwear declined modestly (—0.1%; +0.3% year-on-year), the mild temperatures at the beginning of automn having had an adverse effect on prices of clothes (—0.4% in October 2014). Health product prices held steady in October but fell year-on-year (—2.9% as in September). Moreover, the drop in prices of high tech products continued: —0.5% for audiovisual, photographic and information processing equipment (—6.8% year-on-year) and —1.3% for telephone and telefax equipment (—15.8% year-on-year).

Energy prices decreased by 0.4% in October 2014 (—0.2% in September and —0.8% in August) due to a new drop in petroleum product prices (—1.7% after —0.3% in September and —1.1% in August; —3.6% year-on-year). Compared to October 2013, the fall is marked for motor fuels (—3,2%) and ever more for heating fuels (—7.1%). On the contrary, prices of town gas bounced back sharply in October 2014 (+4.0%; +0.2% year-on-year). Electricity prices remained steady in October (+2.7% year-on-year).

The core inflation indicator (ISJ) stayed steady in October 2014. Year-on-year, core inflation (ISJ) remained at 0% for the second month in a row. The Harmonized Index of Consumer Prices (HICP) stabilized between September and October 2014; it accelerated slightly year-on-year (+0.5% after +0.4% in September 2014).