French Inflation Unexpectedly Accelerates on Services, Power

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessFrench Inflation Unexpectedly Accelerates on Services, PowerFrench inflation unexpectedly quickened this month, supporting the case for another European Central Bank interest-rate increase.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.Customers shop at a Casino supermarket, operated by Casino Guichard-Perrachon SA, in Paris, France, on Tuesday, June 27, 2023. Casino said it will need an equity boost of €900 million ($981 million) or more and the conversion of its unsecured debt into stock as the French retailer hammers out a restructuring plan. Photographer: Benjamin Girette/Bloomberg Photo by Benjamin Girette /Bloomberg(Bloomberg) — French inflation unexpectedly quickened this month, supporting the case for another European Central Bank interest-rate increase.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountConsumer-price growth in the euro area’s second-largest economy jumped to 2.4% in July, statistics agency Insee said on Friday. That’s stronger than predicted by any economist in a Bloomberg survey, which showed the level remaining steady at 2%.The data are part of a raft of releases from the region’s major economies before the currency bloc itself publishes numbers later on Friday. Analysts see an uptick to 2.9% from 2.8% after the conflict in the Middle East flared up again this month. Spanish and German figures already came in higher.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againIn France, the closely watched gauge for services inflation increased 2.3% in July, compared with 1.9% in June. Energy accelerated to 12.4%.What Bloomberg Economics Says…“France’s inflation increased more than expected in July as the renewed escalation of the Middle East conflict pushed up pump prices while heat waves likely supported accommodation prices. Underlying price pressures stay modest, however, consistent with recent cyclical surveys.”—Jean Dalbard, economist. For full React, click hereTogether with better-than-predicted economic output numbers on Thursday, that puts ECB policymakers on track for another rate hike in September. Economists predict a 25 basis-point move, and markets agree, seeing a 90% likelihood of an increase at the next meeting. Still, a new round of inflation readings due before then could yet derail such assumptions.Beyond elevated prices, French officials are concerned over public finances, with Budget Minister David Amiel joining Finance Minister Roland Lescure’s warnings from earlier this week.“France is sitting on a powder keg when it comes to its public debt,” Amiel told Sud Radio on Friday. “If nothing is done, the French deficit would rise from 5.1% of gross domestic product — its level in 2025 — to nearly 6% in 2027, and to nearly 7% in 2030. That would be a veritable explosion of the deficit.” —With assistance from James Hirai, Phil Serafino, Giovanna Coi, Joel Rinneby and Harumi Ichikura.(Updates with market pricing in fifth, fiscal worries starting in seventh paragraph)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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