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French inflation edges higher

The cost of consumer goods in France jumped 6% in January in annual terms from 5.9% in December, conclusive data by the country’s statistics agency Insee showed on Friday.

The higher consumer price index (CPI) rate was prompted by an acceleration in food costs, which were up 13.3% year-on-year, and in energy prices, which soared 16.3%.

The price increases of manufactured goods and those of services have slowed, according to Insee.

The report showed that seasonally adjusted, consumer prices increased by 0.8% over a month.

  • The core rate, which excludes items with volatile pricing such as unprocessed food and energy, increased to 5.6% in January from 5.3% in December.

Meanwhile, the European harmonized CPI was up 0.4% on the month and 7% on the year.

According to a Bank of France forecast, inflation in the country will peak in the first half of 2023, after which it will gradually slow to about 2% by the end of 2024.

In December, it was reported that French food manufacturers had asked retailers to raise product prices by 15-25% from the beginning of 2023 amid inflation and rising production costs.

Economists expect inflation in the country to start easing once increases in energy prices subside.

  • Its Finance Minister Bruno Le Maire has said that the country’s top economic priority was to bring down energy prices and spiraling inflation.

Source: RT