French economy contracts in Q3, inflation continues to ease
2023.11.30 03:38
© Reuters. A sign reading “Anti-inflation challenge, third price cut on more than 500 new products” is seen as customers shop at a Carrefour supermarket in Montesson near Paris, France, September 13, 2023. REUTERS/Sarah Meyssonnier/File Photo
PARIS (Reuters) – The French economy contracted by 0.1% in the third quarter of the year, the revised data from the statistics office INSEE showed on Thursday, while November inflation continued to ease more than expected.
The contribution from gross fixed capital formation, which indicates how much of the new value added in an economy is invested rather than consumed, to the French GDP was reviewed considerably downwards, while the contribution of the domestic demand also slowed to 0.2 point, INSEE said.
The stats office added the contribution of external trade, at -0.4 points, also negatively contributed to the GDP, as the imports grew.
In November, the EU-harmonised preliminary inflation came to 3.8% year-on-year, below a Reuters poll of 19 economists, which had predicted a 4.1% figure. The inflation was down from 4.5% in October.
It was helped by easing energy price rises and those in the services sector.
Food prices were up 7.6% in November, versus 7.8% in October while the rise of energy prices slowed down to 3.1% after 5.2% increase last month.
Month-on-month, the prices declined by 0.2%, as falling transportation and energy prices offset a month-on-month rise of food prices, in particular fresh produce.
