The consumer price index provisionally increased by 1.2 percent year-over-year in September, a significant decrease from the 1.8 percent final rise achieved in August. The primary cause of this decline is the fall in energy prices, particularly petroleum products. This trend is also influenced by a delayed increase in service prices and a quicker decline in the prices of manufactured products. In contrast, food and tobacco prices remain stable compared to the previous month.

Month-over-month, the CPI was down fully 1.2 percent, the most significant fall since 1990. This is influenced by seasonal factors, such as a significant decrease in energy and healthcare costs, and reduced transport and accommodation prices following the Olympic Games. Nevertheless, the demand for manufactured products, particularly footwear and apparel, is expected to increase. Tobacco prices are anticipated to remain stable, despite these fluctuations.

The harmonised index of consumer prices reflects this trend, with a 1.5 percent year-over-year increase and a 1.2 percent monthly decrease, indicating substantial price adjustments in a variety of economic sectors. These dynamics indicate that inflation is decreasing, primarily due to price adjustments in the energy and service sectors. Today's data reduce the RPI to minus 29 and the RPI-P to minus 10, showing overall economic activity falling sightly short of market expectations.

Prices are expected to fall 0.7 percent on the month, trimming the annual inflation rate by a tick to 1.7 percent.

The consumer price index (CPI) is a measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly and annual changes in the CPI represent the main rates of inflation. The national CPI is released alongside the HICP, Eurostat's harmonized measure of consumer prices. A flash estimate was released for the first time in January 2016 and is now published towards the end of each reference month.

The consumer price index is the most widely followed indicator of inflation. An investor who understands how inflation influences the markets will benefit over those investors that do not understand the impact. In countries where monetary policy decisions rest on the central bank's inflation target, the rate of inflation directly affects all interest rates charged to business and the consumer. As a member of the European Monetary Union, France's interest rates are set by the European Central Bank.

France like other EMU countries has both a national CPI and a harmonized index of consumer prices (HICP). The HICP is calculated to give a comparable inflation measure for the EMU. Components and weights within the national CPI vary from other countries, reflecting national idiosyncrasies.

Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how indicators such as the CPI influence the markets - and your investments. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion.

By tracking inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform. Over the long run, the bond market will rally (fall) when increases in the CPI are small (large). The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.