French inflation surges in October

13th November 2007, Comments 0 comments

13 November 2007 , PARIS - Annual inflation in France surged to 2.0 percent in October, its highest reading since May 2006, in response to increases in the prices of food and energy, official figures showed Tuesday.

13 November 2007

PARIS - Annual inflation in France surged to 2.0 percent in October, its highest reading since May 2006, in response to increases in the prices of food and energy, official figures showed Tuesday.

The national statistics institute INSEE said household consumer prices rose 0.2 percent in October from the previous month.

Food prices were up 0.5 percent in October while the index of energy prices gained 0.7 percent after rising 0.6 percent in September, reflecting near record crude oil rates.

Prices of oil products jumped 1.1 percent in October and 8.1 percent over the previous 12 months.

While inflation is still relatively moderate in France, "an increase in the price of food and energy, coupled with regular rent hikes, will continue to fuel perception of a loss of household purchasing power," said analyst Mathieu Kaiser of the BNP-Paribas bank.

AFP

Subject: French news

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