French October inflation highest since 1985

French October inflation highest since 1985

Food prices soared almost 12 percent in France in October
Food prices soared almost 12 percent in France in October. Photo: LOIC VENANCE / AFP
Source: AFP

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French consumer prices rose at their fastest pace since 1985 in October, official data showed Friday, driven by rising energy, food and manufactured goods prices.

Year-on-year price growth hit 6.2 percent this month, statistics authority Insee said based on preliminary data, a new increase in inflation after it slowed in August and September.

Food especially grew more expensive, at almost 12 percent, in a blow to the least well-off households who spend a larger share of their monthly budget at supermarkets.

Meanwhile energy prices added almost 20 percent, despite government interventions to limit bills for consumers that have kept overall inflation below levels seen in EU neighbours.

Russia's war on Ukraine and the throttling of gas supplies to Europe has triggered an energy crisis on the continent -- at the same moment when many of France's vital nuclear power plants are offline for maintenance.

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French inflation reached 7.1 percent year-on-year when measured using the Harmonised Index of Consumer Prices (HICP) yardstick preferred by the European Central Bank.

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The Frankfurt-based ECB on Thursday announced a fresh bumper interest rate hike of 0.75 percent as it strives to bring price growth across the 19-nation eurozone under control.

"We will have further rate increases in the future," central bank chief Christine Lagarde said. "There is still ground to cover."

Insee will publish its final October inflation reading in mid-November.

Source: AFP

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