French Inflation Rises Further to Record High

French inflation rose further in June to a record level according to the European harmonized measurement method. Money in the country was worth 6.5 percent less than a year ago. That was 5.8 percent in May.

 

Moreover, the increase was greater than economists had expected.

Inflation in France was mainly driven by high energy prices. In a year, energy became a third more expensive. That is much less than in other European countries because France extracts a lot of electricity from nuclear energy, but also regulates price increases. In addition, the French government has introduced a tax rebate on fuels.

Increased food prices also played a significant role. On average, food became 5.7 percent more expensive.

The French statistical office INSEE also uses its measurement method for inflation. According to that method, inflation was 5.8 percent, compared to 5.2 percent in May. Compared to last month, life in France became 0.7 percent more expensive.

Earlier this week, Spain also reported that inflation turned out sharply higher in June. In Germany, inflation actually fell, which was mainly attributed to government interventions. For example, as of June 1, the excise duty on fuel in Germany was reduced.

Figures for the eurozone will be released on Friday. Then the Central Bureau of Statistics (CBS) will also issue a figure according to the European harmonized measurement method. The statistical office will release its own inflation figure next week.

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