Paris, Oct 15: France’s annual inflation rate climbed to 1.2% in September, up from 0.9% in August, according to final data released by the country’s statistics agency INSEE on Wednesday.
The rise was primarily driven by higher prices for services, food, and tobacco, partially offset by a sharp decline in energy costs.
Month-on-month, the Consumer Price Index (CPI) fell 1%, reflecting seasonal price adjustments and easing demand pressures.
A detailed breakdown showed service prices increased 2.4%, food prices rose 1.7%, and tobacco prices jumped 4.1% from a year earlier. Meanwhile, energy prices dropped 4.4%, helping moderate overall inflation.
Economists noted that while headline inflation remains subdued compared to earlier peaks, the persistent rise in services and tobacco costs could limit room for aggressive policy easing by the European Central Bank in the near term.
