French consumer prices keep climbing

Inflation is being driven by soaring energy and food costs, data shows

Inflation in France accelerated to new highs in October, data from the National Institute of Statistics and Economic Research (Insee) showed on Tuesday.

According to the report, EU-harmonized year-on-year price growth in the country hit 7.1%, jumping from a September high of 6.2%. Meanwhile, the national consumer price index was somewhat lower, but still up at 6.2% year-on-year from 5.6% in the previous month. Overall, prices were up by 1% in monthly terms.

INSEE indicated that inflation was mainly driven by energy and food costs, which have increased 19.1% and 12.0% in annual terms, respectively. Data also showed that the cost of services slowed down slightly.

On Monday, French Finance Minister Bruno Le Maire stated that the country’s top economic priority was to bring down energy prices and spiraling inflation.

Meanwhile, Bank of France head, Francois Villeroy de Galhau projected last week the country’s economy should not suffer any hard landing although a “limited and temporary recession” remains possible. The French economy is “resisting a bit better than expected,” Villeroy told Europe 1 radio, adding it will likely keep growing at a meager pace in the final quarter of this year.

Find more stories on economy and finance in TROIB business