Annual inflation in the French economy accelerated to 0.7 per cent this month, from 0.5 per cent in the previous month, in an encouraging sign of a pick up in consumer prices in the eurozone’s second largest economy.
Year-on-year prices were pushed up by a 2.1 per cent rise in energy prices and a 1 per cent climb in services. November’s inflation rate means French prices rose at the same pace as in Germany this month.
However, a closely-watched measure of core inflation – which strips out volatile elements – came in at a more moderate 0.5 per cent.
“Core inflation is a very lagging indicator in France, and we think it will rise gently to about 1 per cent in the middle of next year”, said Claus Vistesen at Pantheon.