PARIS (dpa-AFX) - France's consumer price inflation slowed marginally in September on energy and food prices, preliminary data from the statistical office Insee showed Friday.
Household consumption remained flat in August as the increase in manufactured goods spending was offset by a drop in food and energy consumption.
Consumer price inflation slowed to 0.9 percent in September from 1 percent in August. The rate was expected to remain unchanged at 1 percent.
The slowdown in energy and food prices was partially offset by acceleration in services prices, data showed.
On a monthly basis, consumer prices dropped 0.3 percent, reversing a 0.5 percent rise a month ago. This was also bigger than the expected 0.2 percent decrease.
Year-on-year, the harmonized index of consumer prices climbed by less-than-expected 1.1 percent in September after rising 1.3 percent in August. Economists had forecast an increase of 1.4 percent.
On month, the HICP declined 0.4 percent in contrast to a 0.5 percent rise in the previous month. Prices were expected to ease 0.3 percent. Final data is due on October 15.
In a separate communiqué, the statistical office said producer prices in the domestic market decreased at a faster pace of 0.7 percent on year in August after easing 0.3 percent. Month-on-month, prices stabilized following a 0.3 percent rise.
In the overall market, producer prices dropped 0.1 percent on month taking the annual fall to 0.7 percent in August.
Another report from Insee showed that consumer spending remained flat on month in August, following a 0.4 percent rise in July. Spending was expected to advance 0.3 percent.
Spending on manufactured good grew 1.1 percent, which was offset by a 0.9 percent drop in food purchases and a 1.3 percent decrease in energy consumption in August.
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