French inflation unexpectedly slows in Sept as food price rises ease

People walk in a busy street in Paris, France, Sept 17, 2023. REUTERS/Gonzalo Fuentes/File photo

PARIS  – French inflation unexpectedly slowed in September as easing price rises in the food sector outpaced higher prices in the energy sector, preliminary EU-harmonized official data showed on Friday.

French consumer prices rose 5.6 percent  in September from a year earlier, after a 5.7-percent rise in August, the INSEE statistics agency said.

A Reuters poll of 16 economists had an average forecast for the 12-month inflation rate of 5.9 percent.

Food prices rose 9.6 percent in September following an 11.2-percent jump in August while energy prices jumped 11.5 percent after rising 6.8 percent in August.

READ: French shoppers buy fewer tampons, less detergent as prices surge

High food prices have spurred consumers to cut back on purchases and left the French government struggling to strong arm retailers and producers to reduce prices.

In the hope of getting lower prices to consumers faster, the government has sent a bill to parliament which moves the deadline for wrapping up annual price negotiations to Jan. 15, 2024, instead of the traditional March 1 deadline.

READ: French, Spanish economies grew in Q2, Germany stagnated

Separately, French retailers Carrefour and E-Leclerc said on Tuesday they would sell car fuel at cost, under pressure from the government to lower prices at the pump following a recent spike in global crude oil prices.

To help people cope with inflation, the French government initially considered lifting a ban on fuel being sold at a loss, but revised its plan in the face of opposition from distributors.