Surging energy costs have pushed consumer prices higher, INSEE agency says

Consumer prices in France have reached their highest rate in over three decades, data from the state statistics agency INSEE showed on Wednesday.

According to the report, inflation in the country increased by 0.9% in June from the month before, driving annual inflation to 6.5%, its highest level since 1991. The figures marked the second month in a row in which inflation has topped record highs since France began using the EU’s calculation methods in the early 1990s.

The country’s national consumer price index was also up at 5.8% year-on-year from 5.2% in May.

INSEE indicated that inflation was mainly driven by surging energy prices, which increased 33.1% in annual terms. Data also showed that the cost of services rose by 3.3% year-on-year.


READ MORE: France could face blackouts without Russian gas — Michelin boss

The French government and the central bank have both cut their economic-growth forecasts for this year. Bank of France Governor, Francois Villeroy de Galhau told France Info radio on Wednesday that stagflation in the country can’t be ruled out. The regulator’s main scenario still points to 2.3% growth for the whole of 2022.

Finance Minister Bruno Le Maire has warned that the state is running out of fiscal space to keep offsetting rising energy prices for firms and households.

For more stories on economy & finance visit RT’s business section

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Navy Day warship parade in St. Petersburg (WATCH LIVE)

Navy Day warship parade in St. Petersburg (WATCH LIVE)

Defiant Schroeder will keep talking to Putin

Defiant Schroeder will keep talking to Putin

Moscow reveals solution to oil shipping problem – media

Moscow reveals solution to oil shipping problem – media

Крупнейшая сделка в игровой индустрии на 68,7 миллиарда долларов никак не состоится. Microsoft уже год не может завершить покупку издателя Call of Duty и Warcraft из-за антимонопольных расследований

Крупнейшая сделка в игровой индустрии на 68,7 миллиарда долларов никак не состоится. Microsoft уже год не может завершить покупку издателя Call of Duty и Warcraft из-за антимонопольных расследований