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French producer prices fall on easing energy costs

Published 10/30/2008, 04:14 AM
Updated 10/30/2008, 04:18 AM

PARIS, Oct 30 (Reuters) - Declining energy costs put more downward pressure on producer prices than expected in September, with prices down 0.4 percent compared with the previous month, data showed on Thursday.

The monthly fall was bigger than the 0.2 percent fall expected by analysts polled by Reuters.

National statistics office INSEE said producer prices were 6.1 percent higher than a year earlier, largely due to the price gains of previous months but down 0.1 percent over three months.

No revision was made to the 0.5 percent month-on-month decline seen in August, when producer prices fell for the first time since December 2006.

Energy prices dropped 2 percent on the month but were up 15.8 percent on the year.

The producer price index excluding energy rose 0.2 percent on the month after rising by 0.3 percent previously. (Reporting by Tamora Vidaillet, editing by Mike Peacock)

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