French April inflation higher than expected at record 5.4% -Breaking
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© Reuters. FILEPHOTO: After the outbreak (COVID-19) of coronavirus in Bretigny-sur-Orge and near Paris France on July 30, 2020, a customer purchases vegetables from Naturalia organic food grocery store. REUTERS/Benoit TessierPARIS (Reuters) – French inflation unexpectedly rose to a record high in April due to surging energy costs, preliminary EUharmonised data revealed on Friday. This puts fresh pressure on President Emmanuel Macron.
The INSEE stats agency reported that consumer prices rose 0.5% to April. That’s an increase of 5.4% over March, and the highest level since France used the European Union methodology in the calculation of the inflation readings.
This was due to a 26.6% increase in energy prices year-on-year and a pickup in the prices of services. The average inflation expectations of 17 economists polled by Reuters were higher than actual.
Macron’s poor performance in legislative elections is a sign of trouble as he prepares for them next month. Macron won this term by winning another presidential vote. The election was heavily fought because voters were concerned about rising inflation, which could be threatening their purchasing power.
The package of 25 billion euros ($26.3 billion), which Macron’s government created to assist consumers in rising prices, has helped keep inflation under the Euro zone average.
INSEE stated that annual inflation, as measured by France’s national consumer price Index rose to 4.8% from 4.5% in March. It was the highest point since November 1985. Reuters polled economists and they expected to see 4.5% in April.
France’s national index is closely monitored, and the EU-harmonised indicator is used to assess inflation rates in other countries that use the euro.
($1 = 0.9523 euros)
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