French Inflation Jumps More Than Expected to Hit New Record
French inflation accelerated more than expected to reach another record, reflecting the economic repercussions of Russia’s invasion of Ukraine and the growing challenges facing policy makers.
European Union-harmonized consumer prices rose 5.1% from a year ago in March -- the most since the data series began in 1997. The median estimate in a Bloomberg survey of economists was 4.9%. Out of 19 surveyed, 13 expected a lower reading.
Thursday’s data follow unexpectedly high readings the previous day from Germany and Spain, with the latter reporting a number approaching 10%. France, the euro area’s second-largest economy, has done more to shield consumers from spiking energy costs.
The ramp-up in euro-zone prices is heaping pressure on the European Central Bank to raise interest rates from record lows. But while some ECB officials are pushing for one or more hikes this year, President Christine Lagarde has stressed the need for a gradual approach amid “significant risks” to economic growth.
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