French inflation eases from decades high

PARIS

French annual inflation eased in August from a three-decade high, the first slowdown in over a year, official data showed yesterday.    

Consumer prices hit 5.8 percent in August compared to 6.1 percent in July, which was the highest level since 1985, according to statistics institute INSEE.    

It was the first time that the annual inflation rate eased off since July 2021, when it was at 1.2 percent.    

Inflation rose after countries began to lift COVID restrictions and it worsened following Russia’s invasion of Ukraine in late February, which led to a massive surge in energy and food prices.    

While the rise in energy prices slowed down in France in August, those of manufactured goods and food is accelerating, INSEE said.    

On a month-to-month comparison, however, consumer prices rose by 0.4 percent between July and August following a 0.3 percent increased between June and July.    

Spain also saw inflation ease in August, though it remained elevated at 10.4 percent, while consumer prices in Germany - the eurozone’s top economy - accelerated again by 7.9 percent.    

The European Central Bank, which oversees monetary policy in the eurozone, raised its interest rates for the first time in over a decade in July as energy prices drove inflation ever higher.    

The ECB is expected to raise rates again at its next meeting on September 8, with calls increasing for the bank to act decisively.