Inflation in Europe declining especially in France
2023.01.04 08:44
Inflation in Europe declining especially in France
Budrigannews.com – According to data released on Wednesday, inflation in France unexpectedly fell well below 7% in December from a record high a month earlier. This is the latest indication that Europe is overcoming the worst of the inflation crisis thanks to slower increases in energy prices.
After Germany’s inflation fell for a second month in a row in December and lower Spanish inflation figures released last week, the French data added to recent evidence of easing price pressures in the euro zone.
On the basis of the possibility that Europe’s inflation crisis may be getting better, the new data led to a decrease in the yields on French bonds and an increase in European stocks.
According to preliminary EU-harmonised data from the national statistics office INSEE, France’s inflation rate decreased to 6.7% in December. That was down from 7.1% in November and beneath the normal gauge for 7.2% in a Reuters survey of financial experts’ assumptions.
Energy cost increments were the least since September 2021, rising 15.1% contrasted and 18.4% in November as discount gas costs fell across Europe lately in the midst of record high temperatures.
According to France Inter, the French Minister of Finance Bruno Le Maire, inflation would decline in 2023. He has stated in the past that inflation would rise until the middle of the year before falling back.
Since regulated gas and electricity prices increased by 15% at the beginning of the year, energy prices are likely to contribute to inflation pressures in January.
According to Asteres consultant economist Sylvain Bersinger, “The favorable moves in energy prices suggest there may be light at the end of the tunnel.”
Although limited increases in regulated gas and electricity prices have kept inflation in France lower than in most other EU nations, the impact on consumers’ purchasing power is still eroding household confidence.
In a separate report on Wednesday, INSEE stated that its consumer confidence index fell slightly from 83 in November to 82 last month, well below the long-term average of 100.
While INSEE’s month to month overview showed families’ interests about joblessness, their funds and expansion on the ascent, diminishing buying power is additionally igniting social pressures.
A demonstration is planned for Saturday in Paris by the yellow vest anti-government movement, which has been mostly dormant since the large-scale, violent street protests at the end of 2018
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