France's inflation rate has slowed for the first time since the outbreak of the war in Iran, as energy prices decline, which will alleviate the pressure on the European Central Bank to continue raising interest rates.
Data released on Tuesday by the French National Institute of Statistics and Economic Studies (Insee) shows that consumer price growth in the eurozone's second-largest economy slowed to 2% in June, down from 2.8% the previous month. Economists surveyed by Bloomberg had anticipated a rate of 2.3%.
This is undoubtedly positive news for the European Central Bank, which this month raised borrowing costs for the first time since 2023, citing the spread of inflation triggered by the Middle East conflict across the entire eurozone economy.
Another set of data from Insee revealed that consumer spending, a key driver of the French economy, increased by 0.5% in May, following a 0.5% decline in April. Economists polled by Bloomberg had forecast a rise of 0.3%.
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