Inflation Eases to 4.5% in France
As world power contends with a spike in the consumer price index, France’s annual inflation rate slowed to 4.5% in June from 5.1% in May, thanks to a downturn in energy prices, preliminary data from the National Institute of Statistics and Economic Studies showed Friday.
Ahead of data release, analysts expected an inflation rate of 4.6%. On a monthly basis, consumer prices inched up 0.2%, in line with expectations, compared with the previous 0.1% fall.
Meanwhile, the country’s harmonized inflation rate was 5.3% on a yearly basis in June, against the 6% rate recorded in May and the consensus estimate of 5.4%. Month over month, consumer prices were up 0.2%, as expected, compared with the prior 0.1% decrease.
France has seen an increase in interest rates to combat the inflation trend following global pressures that greeted large economies. US Fed reserve chair has recently said there’s a need to push rates higher again.
On Friday, French industrial producer prices for the home market rose 5.8% year over year in May, slowing from the 7% increase in April, the National Institute of Statistics and Economic Studies said.
On a monthly basis, industrial producer prices declined 1.4%, against the previous 5.2% decrease. Inflation Eases to 4.5% in France