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French inflation hits new record of 5.8% in May -Breaking

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© Reuters. FILEPHOTO: A crowd walks through the Financial and Business District of La Defense near Paris on January 31, 2022. REUTERS/Sarah Meyssonnier

PARIS (Reuters – French inflation rose above expectations in May according to preliminary EUharmonised data. The figures were released on Friday. President Emmanuel Macron is under pressure ahead of the January legislative elections.

According to INSEE Statistics Agency, consumer prices rose 0.7% to 5.8% in May. That’s an increase of 5.4% from April. This was the highest inflation rate since France used the European Union methodology in calculation the readings.

Eight economists polled by Reuters expected inflation to increase to 5.6% on an average basis, according to a survey.

France is committed to tackling high inflation and Macron’s government promises a new round of support for purchasing power following the elections.

France, with a package costing 25 billion euros and involving high-cost caps on electricity and gas price rises, has managed to maintain inflation levels that are lower than those in other EU member countries except Malta.

INSEE stated that the annual inflation measured by France’s national consumer price index increased to 5.2% in may from 4.8% April. It was its highest point since September 1985. Reuters polled economists to predict 5.0% for May.

France follows the national index more closely than France. However, the EU-harmonised indicator is used in other countries to compare inflation rates between those using the euro.

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