12 October 2017

2017- n° 270

In September 2017, consumer prices fell back by 0.2% over a month and rose by 1.0% year on year Consumer price index - final results - September 2017

In September 2017, the Consumer Prices Index (CPI) edged down by 0.2% over a month, after a rebound of 0.5% in August. This drop mainly came from a seasonal downturn in services prices and, in a lesser extent, from a slight drop in food prices. Energy prices slowed down a little. Contrariwise, manufactured product prices accelerated.

Seasonally adjusted, consumer prices accelerated by 0.2%, as in August.

Year on year, consumer prices gathered pace for the second consecutive month: +1.0% after +0.9% in August and +0.7% in July. This rise resulted from an acceleration in energy prices and food prices and a lesser drop in manufactured product prices. On the other hand, services prices slowed down again, due to a stronger fall in airfares and in communication services.

In September 2017, the core inflation indicator (ISJ) rose slightly (+0.1%), after two months of stability. Over a year, it rose by 0.5%, as in July and in August. The Harmonised Index of Consumer Prices (HICP) edged down by 0.2% after a rebound of +0.6% in the previous month; year on year it gathered pace slightly to +1.1% after +1.0% in August.

Energy prices slowed down slightly in September (+1.1% after +1.2% in August), but the dynamic was more sustained than in September 2016 (+0.8%). Year on year, energy prices accelerated again (+5.1% after +4.8%). This increase came from the monthly acceleration in prices of petroleum products after a rebound in the previous month (+2.1% after +1.6%). The monthly stability in the prices of natural gas and town gas and electricy partially moderated the sharp rise in petroleum product prices.

In September 2017, food prices rose sharply faster than in the previous month year on year (+1.1% after +0.6%). This acceleration resulted from a marked rebound in fresh food prices (+1.6% year on year after −0.8%), due to an acceleration in fruit prices (+4.7% after +2.6%) and a lesser drop in vegetables prices (−0.3% after −4.6%). Excluding fresh products, food prices grew more than in August: +1.0% year on year after +0.8%, due to a increase in prices of oils and fats (+4.3% year on year after +3.4%). The increase in food prices excluding fresh food products has been the strongest since August 2013.

Year on year, manufactured products prices dropped less in September than in August (−0.5% after −0,7%). This lesser fall came from those in clothing and footwear prices (−0.7% year on year after −1.3%), with a later end of summer sales this year. The year-on-year drop in medical health product prices decreased again a little, to −1.9 % after −2.0%. Over a month, their prices rose by 0.1%, first increase since May 2013. The prices of “other manufactured products” were stable year on year after a slight drop (−0.1%) in August. Over a month, they rose by 0.3% as in the previous month. The monthly rebound in prices of audio-visual, photographic and information processing equipment (+0.4%; −1.6% year on year) was offset by a slowdown in furniture and furnishings (+1.4%; +0.4% year on year) and in household appliances (+0.1%; −1.7% year on year).

Year on year, services prices slowed down in September (+1.0% after +1.2%). This change was mainly due to airfares (+2.5% after +4.3% year o year); from August to September, their prices slumped drastically (−19.6%) with the end of summer holidays. In communication services, the year-on-year drop was accentuated (−5.2% after −4.8%). Contrariwise, the prices of accommodation services accelerated sharply year on year (+4.1% after +2.8%), the drop in prices from August to September being less pronounced this year. Health services prices gathered pace to +1.8% year on year after +1.7% in August, following the changes in medical fees provided by the medical convention signed in August 2016.

Compared with the provisional estimates published on 29 September 2017, the month-on-month change in the CPI and the HICP was diminished by 0.1 point and the year-on-year changes were confirmed.