Energy costs push French inflation higher

Consumer prices in the Eurozone’s second-largest economy jumped 7% in January from a year ago, official data shows

Inflation in France accelerated in January as the government phased out some measures to contain soaring energy and food prices, figures reported on Tuesday by Insee, the country’s statistics agency, show.

According to preliminary estimates, the standardized EU measure of price growth rose 7% from a year ago after a 6.7% increase in December.

The report indicated that inflation, which was in line with expectations, jumped after the government wound back a subsidy for car fuel at the end of the year.

Adding further pressure on energy costs was a 15% hike in government-set regulated gas prices at the start of the year, according to Reuters. Regulated power prices are also set to rise 15% in February, the outlet reported.

Meanwhile, economists expect inflation in France to start easing once increases in energy prices subside. Finance Minister Bruno Le Maire has said that the country’s top economic priority was to bring down energy prices and spiraling inflation. He expects inflation to abate from the middle of 2023 onwards.

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