French inflation climbs to 0.7% in November, matching Germany

Posted on November 30, 2016

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.

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