French preliminary inflation at 2.5% in April, above forecasts, as energy costs bite
French consumer prices rose more than expected in April, with the harmonized inflation rate reaching 2.5% year-on-year, surpassing the median forecast of 2.3% from analysts. The increase was primarily driven by higher energy prices, particularly oil, according to preliminary data from INSEE. If confirmed, this would mark the first time since August 2024 that France's inflation hits the European Central Bank's 2% target.
- ▪France’s harmonized inflation rate was 2.5% year-on-year in April, above the expected 2.3%.
- ▪Energy prices, especially oil, were the main drivers of the inflation increase.
- ▪The data, if confirmed, would mark the first time since August 2024 that France meets the ECB’s 2% inflation target.
- ▪INSEE released the figures as preliminary estimates based on early April price data.
- ▪A Reuters poll of 19 analysts had projected a range between 2.2% and 2.6% for the inflation rate.
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April 30 (Reuters) - French consumer prices rose more than expected in April, preliminary data from statistics agency INSEE showed on Thursday. France’s harmonized inflation rate, adjusted for comparison with other euro zone countries, was 2.5% year-on-year in April, driven by a rally in energy prices and oil in particular, the stats office said. A Reuters poll of 19 analysts had expected a median rate of 2.3%, with estimates ranging from 2.2% to 2.6%. If the preliminary data is confirmed, April would be the first month since August 2024 that France crosses a European Central Bank inflation target of 2%.
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