French inflation remains stable and low in october (+0.8% YoY)

French inflation (CPI) eased from + 0.9% YoY in September to +0. 8 % in October , a bit higher than expected , due to a slight decline in service and food prices but offset by a small increase in manufactured products . In Q4 2019, inflation is expected to stagnate at 0.0% QoQ and to increase by +1% YoY , compared to Q3 (+0.2% QoQ and +1.0% YoY) French consumer prices are stable at 0% MoM in October (-0.1% expected) after a -0.3 % in August. The decline in food prices (-0.4% MoM) and in services (-0.1% MoM) is offset by the slight increase in manufactures products prices (+0.3% MoM). They are stable in energy and in tobacco (0% MoM). In a year-over-year basis, energy prices have been decreasing by -1.6% in October (prior: +0.2%). Outlook : French inflation should continuously decrease in Q4 2019 and in Q1 2020, reaching 0% QoQ on Q4 and -0.1% QoQ in Q1 2020. Inflation is expected to remain moderate at +1% in 2020, mainly on the back of a decrease in oil prices until H1 2020 , but also still due to the tax freeze on fuel for the whole of 2019 and to low energy prices (electricity and gas) .