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Soft French Inflation Consistent with Germany, Belgium, Netherlands

FRANCE DATA
France September flash CPI was softer-than-expected, consistent with the narrative across many states in the September round, such as Germany, Belgium and the Netherlands.
  • On a sequential monthly basis, CPI was -0.5% M/M (vs 1.0% prior) and HICP was -0.6% M/M (vs 1.1% prior). Consensus was for -0.3% M/M on both prints.
  • The Y/Y CPI print was driven by disinflation in food (9.6% vs 11.2% prior), services (2.8% Y/Y vs 3.0% prior) and manufactured products (2.9% vs 3.1% prior), but offset somewhat by higher energy prices (11.5% vs 6.8% prior) - particularly oil products.
  • Softer services figures were driven by transport and accommodation services.
  • Overall, the prints should point to a further softening in core inflation pressures in France and the Eurozone overall.

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