PARIS -France’s economy eked out meagre growth in the third quarter as household spending stagnated and a sharp jump in inflation in October pointed to the headwinds looming in the final quarter of the year.
France’s economy grew 0.2 percent in the July-September period, in line with market expectations, preliminary data from the INSEE official statistics agency showed.
Meanwhile, consumer prices in October spiraled higher. On an EU-harmonized basis, inflation rose 1.3 percent month-on-month, driven upwards by petrol product costs and food prices. The year-on-year rate came out at 7.1 percent versus 6.1 percent a month earlier, INSEE said.
The data comes a day after the European Central Bank raised interest rates again, worried that rapid price growth is becoming entrenched. It lifted its deposit rate by a further 75 basis points to 1.5 percent – the highest rate since 2009.