France October inflation rises to highest level since December 2023

France’s annual inflation rose to 3.4% in October from 3.1% in September, matching the final estimate and reaching its highest level since December 2023. The increase was driven largely by energy prices, whose annual growth accelerated to 24.1%, while services inflation also picked up; food inflation eased to 1.2%. Core inflation rose to 1.7%, and EU-harmonized inflation increased to 3.7%. The renewed price pressures add to the challenge facing policymakers as they weigh the euro area’s interest-rate path.