France’s economy is losing momentum, but inflation is slowing
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The French economy unexpectedly shrank to 0.1% in the third quarter, but inflation slowed more than expected in November.
About this informs Bloomberg.
According to data from the French statistical agency Insee, France’s GDP fell by 0.1% in the third quarter. Also, inflation for November decreased to the lowest level since the beginning of last year and amounted to 3.8%. In October, it was 4.5%.
GDP revision points to weaker-than-expected growth in the euro area. Accordingly, both of the EU’s largest economies are now in recession and, according to the Bundesbank’s forecasts, Germany is in recession altogether.
In addition, inflation in France declined more slowly than elsewhere in Europe as the government partially lifted restrictions on electricity spending. However, other components of the basket continued to decline. In November, inflation in the services sector slowed to 2.7% from 3.2% in October, and the increase in the prices of manufactured goods decreased to 1.9% from 2.2%.
We will remind:
Inflation in Germany in November slowed down more than expected, falling to the lowest level since June 2021 thanks to lower energy prices.
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