The French Final CPI is a key tool for measuring inflation in France. This index helps determine whether prices in the French economy are generally rising or falling. Inflation is part of the economic cycle in any country, so the CPI plays a pivotal role in determining how the government and the central bank deal with the economy in different periods.
When this index is rising, it means that prices in the French economy have increased. If this increase is persistent, it may indicate inflationary pressures. In this case, the European Central Bank may take measures to raise interest rates to curb inflation. On the other hand, if the index numbers indicate a decline or stability in prices.
How to Calculate the French Final CPI
The French Final CPI calculation relies on a basket of goods and services that represent the consumption patterns of French families. Researchers collect price data for these goods and services throughout the month from various French stores and markets. The basket includes essential items such as food, fuel, medicine, insurance, and other products tied to individuals’ daily lifestyles.
This data is adjusted for certain variables such as seasonal price changes or major shifts in the labor market. After collecting the data, prices in the current month are compared with the prices of same goods and services in the previous month or same month last year. This allows us to determine whether prices have risen or fallen, and thus calculate the inflation rate more accurately.
The effects of the French final CPI on the economy
The French final CPI directly affects the French economy. When prices rise, consumers are greatly affected. Individuals may find it difficult to cover their daily living costs, which reduces their ability to spend.
November 2024, consumer prices fall by 0.1% in one month and rise by 1.3% in one year
In November 2024, the CPI fell by 0.1% in one month, after +0.3% in October. This slight decrease in prices is explained by the seasonal decrease in air transport prices (-11.4% after +14.9%), which leads to a decrease in service prices (-0.3% after +0.2%). Conversely, energy prices rose slightly over one month (+0.2% after +0.8%), as did tobacco prices (+0.1% after stabilizing), while food and manufactured products prices stabilized (after +0.2% and +0.3% respectively in October).
Seasonally adjusted, consumer prices stabilized in November 2024, after +0.2% in October.
Over one year, consumer prices rose by 1.3% in November 2024, after +1.2% in October. This slight increase in inflation is explained by a less sustained one-year decline compared to the previous month in energy prices (-0.7% after -2.0%). Conversely, food prices are slowing down (+0.2% after +0.6%). Prices of manufactured goods over the year are developing at a pace close to those in October (-0.3% after -0.2%), as are prices for services (+2.3% after +2.3%) and tobacco (+8.7% after +2.3%). 8.7%).
Slight increase in core inflation over the year
Core inflation is almost stable over the year and stands at +1.5% in November 2024, after +1.4% in October.
The harmonized consumer price index (HICP) fell by 0.1% over the month, after +0.3% in October. It accelerated slightly over the year: +1.7% in November, after +1.6% in October.
Over the year, energy prices fell less than in October
Over the year, energy prices fell by 0.7% in November 2024, after -2.0% in October.
Oil product prices fell less sharply over the year (-9.0% from -12.0%), due to smaller declines in diesel (-10.7% from -14.8%), gasoline (-5.6% from -7.5%) and petroleum product prices (-10.7% from -14.8%). Liquid fuels (-14.5% from -16.6%).
September 2024 Consumer prices fall 1.2% in one month and rise 1.1% in one year
In September 2024, the CPI fell by 1.2% in one month, after +0.5% in August, the largest monthly decline since the beginning of the series (1990). A decrease in service prices (-2.2% after +0.5%) drove this price decline, primarily due to the seasonal effect of lower transport prices (-13.5% after +1.4%). Air travel prices dropped significantly (-24.8% after +0.7%), along with accommodation services (-17.2% after +7.2%), reflecting a return to normal pricing after the summer holidays and the Olympic and Paralympic Games.On the other hand, energy prices fell again (-1.8% after -1.3%), driven by a decrease in the prices of petroleum products (-3.5% after -2.8%). Food prices fell slightly in one month (-0.3% after +0.3%). In contrast, prices of manufactured goods rose over one month but slowed down (+0.5% after +1.4%), such as clothing and footwear (+4.0% after +6.2%). Tobacco prices are stable over one month as in August.
Seasonally adjusted, consumer prices fell by 0.6% in September 2024, after +0.2% in August.
Over one year, consumer prices rose by 1.1% in September 2024, after +1.8% in August. This decline in inflation is explained by the sharp fall in energy prices (-3.3% after +0.4%) and the slowdown in service prices (+2.4% after +3.0%). Prices of manufactured goods (-0.3% after -0.1%), food (+0.5% after +0.5%) and tobacco (+8.7% after +8.7%) develop over one year at a rate close to or equal to that of August.
Further slowdown in core inflation over one year
Core inflation slows over one year and reaches +1.4% in September 2024, after +1.7% in August.
The harmonized consumer price index (HICP) fell by 1.3% in one month, after +0.6% in August. It slowed over one year: +1.4% in September, after +2.2% in August.
