France inflation rises to 3.4%
France's annual consumer price inflation (CPI) accelerated to 3.4%, according to preliminary data, exceeding market expectations of 3.3% and the previous reading of 3.1%.
Monthly CPI rose 0.4%, above the 0.2% forecast, reversing the previous 0.3% decline. The EU-harmonized consumer price index (HICP) also increased 0.4% month over month, exceeding expectations of 0.3%.
Producer price pressures strengthened as well. Monthly PPI increased 1.7%, up from the previous 1.0% rise, while annual producer inflation accelerated to 6.8%. The previous annual reading was revised from 4.8% to 4.9%. Meanwhile, non-farm employment declined 0.1% quarter over quarter, matching the previous contraction. Rising inflation alongside weak employment could complicate France's economic outlook and influence European Central Bank (ECB) monetary policy expectations.
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