French consumer prices rose 0.8% year-on-year in October, the national statistics agency INSEE said on Friday. The figure came in lower than both analysts’ forecasts and the preliminary estimate released earlier.
The EU-harmonised inflation rate for France, the eurozone’s second-largest economy, eased from September’s 1.1% reading. A survey of 17 analysts had expected inflation to average 0.9%.
INSEE explained that the slowdown was driven by a steeper drop in energy prices and a more moderate rise in food costs. Meanwhile, increases in service prices and tobacco continued to contribute to overall inflation during October.
On a monthly basis, consumer prices edged up 0.1% in October, following a 1.0% decline in September.
Inflation measured by France’s national consumer price index rose 0.9% over the year to October, down from 1.2% in September.
France has kept inflation below the European Central Bank’s 2% target for more than a year. The ECB views this 2% level as the ideal medium-term rate for maintaining price stability.
