France's Inflation Increase Supports ECB's Cautious Rate Cuts

Reported 2 days ago

France's inflation rose to 1.8% in December, slightly above November's 1.7%, which backs the European Central Bank's plan for gradual interest rate reductions. Despite faster inflation in other eurozone countries, economists had expected a higher rise of 1.9%. Energy prices contributed to this uptick, while manufactured goods saw a decline. The ECB anticipates more cuts in 2025, but lingering inflationary pressures complicate France's efforts to manage public finances amid political turmoil.

Source: YAHOO

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