Consumer prices were unrevised in the final report for October. A 0.1 percent monthly rise left the annual inflation rate unchanged at September's final 2.2 percent mark and so only just short of the 90-month peak posted in July/August.
The final HICP similarly matched its flash estimate and so still shows a 0.1 percent monthly increase and a 2.5 percent yearly rate, also in line with the final September print.
Steady annual CPI inflation masked a slight uptick in services (1.2 percent from 1.1 percent) but stronger deflation in manufacturing (0.4 percent after 0.2 percent). Weaker prices in the latter were largely attributable to clothing and footwear (0.0 percent after 0.5 percent). Amongst the more volatile categories, food (2.2 percent after 2.8 percent) was notably softer but energy (13.8 percent after 12.8 percent) moved in the opposite direction. As a result, core inflation edged a tick firmer but, at only 0.8 percent, was still below its level at the start of 2018 and historically very low.
The final October data reaffirm a soft picture of underlying French inflation. Indeed, declining prices in manufacturing seem to be becoming increasingly well entrenched. The ECB cannot be happy.