French Inflation Accelerates to Highest in More Than Two Years, Keeping Pressure on the ECB to Raise Rates

Deep News17:30

French inflation accelerated to its fastest pace in over two years, maintaining pressure on the European Central Bank to continue raising interest rates.

Insee, France's national statistics office, said Wednesday that inflation in the eurozone's second-largest economy reached 3.4% in September, up from 2.6% in August. That was also above economists' estimate of 3.2%.

The seven-month conflict in the Middle East has driven oil and gas prices sharply higher, continuing to weigh on Europe's economy, pushing the European Central Bank to tighten monetary policy and prompting governments to find ways to help businesses and households facing rising energy bills.

Spain reported on Tuesday that its inflation rate unexpectedly surged to 5%, also supporting the case for the European Central Bank to raise rates further.

Recommended reading: Spain's inflation rate unexpectedly surges to 5%, supporting the European Central Bank to raise rates further. Overall inflation for the 21-nation eurozone will be released on Friday, with economists estimating it reached a three-year high of 3.7%.

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