French inflation stabilises in November

12th December 2013, Comments 0 comments

French 12-month inflation rose slightly to 0.7 percent in November, from 0.6 percent a month earlier, official data showed, with rising food prices outstripping a fall in energy prices.

Low inflation has become a concern in the eurozone, especially in crisis-hit countries to the south, where internal demand has been dampened by recession and government spending cuts.

The European Central Bank, which in November cut its main rate to a record low to fight falling prices, has made avoiding a growth-killing deflationary cycle a main priority.

Twelve-month inflation in heavily-indebted Italy also stabilised in November, to 0.7 percent, but with prices falling 0.3 percent from the previous month across all sectors.

© 2013 AFP

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