France’s inflation in June climbed further from the previous month to a record high of 5.8%, from 5.2% in May. The harmonised index is now at 6.5%, compared to 5.8% in May.
The rise in inflation was driven by energy prices (+33.1% year-on-year and +5.3% month-on-month), and food prices (+5.7% year-on-year, +1.4% month-on-month).
However, services inflation is stable at 3.2% over one month, while manufactured goods inflation is down compared to May, standing at 2.6% against 3.0% the previous month.
France says food and energy prices had risen sharply due to disruption resulting from Russia’s invasion of Ukraine, with inflation expected to continue to rise in the third quarter, before gradually declining in the fourth quarter and into 2023
The European Central Bank has also said it will raise rates in July and September to try and tackle the rising inflation.