Inflation hike unlikely in France

27th August 2007, Comments 0 comments

Inflation hike unlikely in France

PARIS, Aug 26, 2007 (AFP) - Inflation in France is unlikely to rise significantly in future despite price increases for basic food products, Prime Minister Francois Fillon said Sunday on commercial television station TF1.

"I don't think at all that there will be a lot of inflation in the weeks and months ahead, and for 2008," he said.

The current inflation rate -- of 1.2 percent, according to the state statistics agency -- "has never been so low," Filon said, adding that "the best guarantee against a high cost of living is competition."

He said his government "want to further improve conditions for competition" and that conservative President Nicolas Sarkozy was planning on passing certain unspecified intitiatives within the next three months.

Fillon said some of the measures would be aimed at stopping "a certain number of abuses... I'm thinking especially of telephone operators."

The government forecast of 2.25 percent growth this year, and 2.5 percent next year, stood, and were underpinned by moves to encourage investment.

Fillon claimed France had been underperforming for the past 15 years "because our country is badly organised."
 
The prime minister acknowledged that a previously announced plan to cut the number of public servants -- particularly teachers -- was creating unease in the civil service ranks.

But he said the cuts would be balanced by an attempt "to do better" in terms of public workers' salaries.

AFP

Subject: French news

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