Thursday, 16 October 2025
Consumer prices in France declined by one percent in September compared with August, marking a sharp monthly fall driven largely by cheaper services during the post-summer period. Despite this drop, annual inflation edged up to 1.2 percent, suggesting that underlying price pressures remain present even as seasonal effects temporarily cool the overall index.
According to data from the national statistics institute INSEE, the fall in September followed a 0.4 percent monthly increase in August. The decline was primarily linked to lower costs in the services sector, where prices dropped by almost two percent on average. The steepest decreases were recorded in transport, particularly air travel, and in accommodation, as tourism demand eased after the summer holidays. Food prices slipped slightly after modest gains in August, while manufactured goods saw slower growth and tobacco prices remained unchanged. Adjusted for seasonal factors, overall consumer prices were stable.
On a year-over-year basis, headline inflation rose from 0.9 percent in August to 1.2 percent in September. The uptick was mainly due to stronger price growth in services and a smaller decline in energy costs. Service inflation reached 2.4 percent, up from 2.1 percent the previous month, as communication and healthcare costs increased. Energy prices were down 4.4 percent from a year earlier, compared with a six-percent drop in August, with fuel prices rising slightly amid a rebound in diesel and petrol. Electricity prices, however, continued to fall sharply, down almost 14 percent from the same period last year.
Food inflation also picked up slightly, with prices rising 1.7 percent over twelve months. Fresh products became marginally cheaper, particularly fruit, but increases in meat, dairy, bread and beverages kept the overall index higher. Manufactured goods prices fell by 0.4 percent, continuing a downward trend driven by cheaper household appliances and furniture.
Core inflation, which excludes energy and food, stood at 1.3 percent in September, a small increase from 1.2 percent in August. The harmonised European measure of consumer prices (HICP) fell by 1.1 percent month-on-month but rose 1.1 percent year-on-year, mirroring the national index.
The latest figures confirm the preliminary estimates released at the end of September and point to a mild but persistent price rise in key service categories despite easing pressures from energy and consumer goods. INSEE’s next inflation update, covering October 2025, is scheduled for release on 14 November.
