Paris-Thursday’s official preliminary figures show that France’s inflation rate rose further from the previous month, reaching a record high of 6.5%, adding headwinds to the eurozone’s second-largest economy.
According to the INSEE Statistics Bureau, prices in June rose 0.8% from May, and provisional inflation for the 12 months of June was 6.5%. Analysts surveyed by Reuters predicted a provisional annual inflation rate of 6.3% in June.
INSEE said food and energy prices soared due to the turmoil caused by Russia’s invasion of Ukraine.
President Emmanuel Macron’s government is under pressure as a result of rising living costs, but the European Central Bank (ECB) has flagged it to raise interest rates in July and September to address rising inflation. increase.
Elsewhere in the Eurozone economy this week, Germany’s inflation rate in June dropped unexpectedly from 8.7% in May to 8.2%, while Spain’s 12-month inflation rate fell in June. It rose to 10.2%, surpassing 10% for the first time since April 1985. ..
The world’s top central bankers said this week that lowering high inflation around the world was painful and could even disrupt economic growth, but it had to be done quickly.
ECB Governor Christine Lagarde has underestimated price increases as pre-pandemic low inflation has not recovered and price increases are likely to remain above the target of 2% over the next few years. Said he had to act now.
By Sudip Kar-Gupta