PARIS — Consumer prices in France rose 3.7% year on year in October on an EU-harmonised basis, statistics office INSEE said on Friday, the highest reading since December 2023. The figure was revised down by 0.1 points from a preliminary estimate.
The harmonised rate accelerated from 3.4% in September. On France's national measure, consumer prices rose 3.4% over the year, unchanged from the preliminary estimate and up from 3.1% in September.
Energy prices remain the main driver of the acceleration, climbing 1.9% on the month and 24.1% compared with October last year. Core annual inflation also picked up, to 1.7% from 1.5% in September, while services inflation rose to 2.6% from 2.4%.
The figures will reinforce expectations that the European Central Bank raises interest rates again in December, with markets pricing roughly 82% odds of a hike. Annual inflation across the eurozone rose to 4.0% in October, according to a Eurostat flash estimate, remaining well above the ECB's 2% target.
The inflation data lands as France's economy struggles: gross domestic product fell 0.1% in the third quarter, according to INSEE's first estimate on October 30, after no growth in the second quarter.
