French official inflation rises to 2.1%

12th May 2011, Comments 0 comments

French consumer prices rose 0.3 percent in April, lifting 12-month inflation to 2.1 percent, owing to rising costs of food and fuel, official figures showed on Thursday.

The end of winter sales also pushed up prices for manufactured goods, which rose 0.6 percent on the month and 0.2 percent on the year, with clothes and shoes showing a 3.2-percent jump on the month, the INSEE statistics institute said.

Oil prices continued to rise in April, climbing 1.0 percent following a 4.0 percent jump in March, and were up 17.9 percent on the year.

Fuel prices at the pump climbed 1.1 percent on a monthly basis and 16.0 percent compared to one year ago.

Food prices rose 0.2 percent from March and 0.6 percent against April 2010.

INSEE had said on Wednesday that French industrial firms expected their investment to jump by 15 percent this year after remaining stagnant in 2010.

Meanwhile France's current account balance narrowed to 4.1 billion euros ($5.8 billion) in March from 5.1 billion euros in February, the Bank of France said on Wednesday.

The improvement was mostly due to a reduction in France's structural trade deficit to 6.0 billion euros from 7.3 billion euros in February.

© 2011 AFP

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