Paris (France) (AFP) – French inflation hit three percent in September from a year earlier, largely due to a surge in energy and fuel costs, the Insee statistics office said Wednesday. The spike represents a sharp increase from the 2.4 percent recorded in August and well above the European Central Bank’s inflation target of two percent.
Energy inflation climbed to 21.2 percent in September after a 16.7 percent rise the previous month, Insee said. Diesel prices in particular have hit record highs in France and several other eurozone countries in recent weeks, a result of the Middle East war that has slowed Gulf shipments of both crude oil and refined fuels.
That has raised expectations among analysts that the ECB will raise interest rates further in the coming months to tame price increases, potentially weighing on the eurozone’s economic growth. The central bank raised its benchmark rate to 2.5 percent earlier this month.
Fellow EU heavyweights Germany and Italy will also release inflation data later Wednesday, ahead of the full eurozone reading on Friday.
© 2024 AFP
