French October inflation at highest since 1985

French October inflation at highest since 1985


French consumer prices rose in October at the fastest pace since 1985, official data showed on Friday, buoyed by rising energy, food and industrial goods prices.

Annual price growth hit 6.2 percent this month, statistics agency Insee said based on preliminary data, a fresh spike in inflation after it slowed in August and September.

Grocery prices in particular rose nearly 12 percent, dealing a blow to the least affluent households, who spend a larger chunk of their monthly budget in supermarkets.

Meanwhile, energy prices rose nearly 20 percent despite government intervention to limit consumer bills, which have kept headline inflation below levels in its EU neighbours.

Russia’s war in Ukraine and cuts in gas supplies to Europe have sparked an energy crisis on the continent – at the same time that many of France’s vital nuclear power plants are being shut down for maintenance.

French inflation reached 7.1 percent year-on-year as measured by the European Central Bank’s preferred harmonized index of consumer prices (HICP).

The Frankfurt-based ECB on Thursday announced a fresh 0.75 percent rate hike in a bid to bring price growth in the 19-nation euro zone under control.

“We will have more rate hikes in the future,” said Fed Chair Christine Lagarde. “There is still ground to be covered.”

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

More to explorer