France CPI surged to 2.8% yoy in November, following 2.6% yoy in October. HICP inflation also jumped to 3.4% yoy, up from 3.2% yoy. That’s also the highest level since 2008.
“This inflation for us today is temporary, it is linked to strong demand, itself linked to a recovery that is much stronger than we anticipated,” Finance Minister Bruno Le Maire said.
Household consumption expenditure on goods in volume dropped -0.4% mom in October, versus expectation of 0.3% mom rise. Consumption remained below 01.8% below its pre-crisis level in Q4 2019. The contraction was mainly due to a sharp drop in consumption of manufactured goods (-1.8%). It is partially offset by the recovery in consumption of food (+0.7%) and energy (+1.0%).
Also released, GDP was finalized at 3.0% qoq in Q3, unrevised.
