French HICP inflation to remain unchanged in September

French HICP inflation is expected to remain unchanged at 0.1% yoy in September. The main culprit behind downward pressure is the lower fuel prices as a result of persistently weak Brent prices in euro terms. Regarding the other components, food is expected to make a positive contribution underpinning the headline. 

The core is also expected to tick up from 0.6% yoy in August to 0.7% yoy in September led by marginal gains in prices of both nonenergy industrial goods and services. Looking ahead,  French HICP inflation is expected to average 0.2% in 2015 and 1.1% in 2016, while the core metric should average 0.7% in 2015 and 1.1% in 2016.