Updated
Updated · Bloomberg · Jun 30
French Inflation Slows to 2% in June as Energy Prices Fall
Updated
Updated · Bloomberg · Jun 30

French Inflation Slows to 2% in June as Energy Prices Fall

2 articles · Updated · Bloomberg · Jun 30

Summary

  • France’s EU-harmonized inflation rate cooled to 2% in June from 2.8% in May, marking the biggest retreat in more than a year.
  • Energy costs drove the slowdown, the first easing since the Iran war began, and the drop was sharper than economists expected in a 2.3% median forecast.
  • Insee’s separate national CPI measure showed annual inflation at 1.8%, with food and services prices also decelerating alongside energy.
  • The weaker price pressure eases immediate pressure on the European Central Bank to keep raising interest rates in the euro area’s second-largest economy.

Insights

Is France's inflation relief a false dawn before Mideast conflicts send energy prices soaring again?
As France's economy contracts, will the ECB’s next rate hike push it into a full-blown recession?
With record debt and a weak economy, is France trapped by the ECB's one-size-fits-all policy?