France’s Harmonised Inflation Rate for September showed a significant decrease, with the actual figure at -1.1%, down from the previous month’s 0.5%. This marks a substantial decline of 1.6 percentage points, indicating a sharp drop in inflationary pressures.
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The actual inflation rate was lower than the analyst estimate of -0.9%, suggesting a more pronounced deflationary trend than anticipated. This unexpected decline may lead to increased volatility in the stock market, particularly affecting consumer goods and retail sectors, as lower inflation can impact pricing power and profit margins. The market impact is likely to be short-term, driven by sentiment shifts as investors reassess inflation expectations.