French Inflation Slows in October Amid ECB’s Tight Monetary Policy

France, the second-largest economy in the eurozone, experienced a slowdown in inflation during October. This decrease was primarily attributed to lower price increases in essential sectors such as energy, food, and consumer goods. The Consumer Price Index (CPI) increased by 4.0% year-on-year, down from September’s 4.9%, in line with economists’ expectations based on recent surveys.

Energy inflation, a key driver of overall inflation, fell to 5.2%, entering single-digit territory. In contrast, inflation for services saw a slight uptick, rising to 3.2%. This data indicates that the European Central Bank’s (ECB) strict monetary policy is effectively reducing demand throughout the eurozone.

The effects of this tight monetary policy are also evident in France’s economic growth figures for the third quarter. The country’s GDP growth for Q3 slowed to just 0.1%, further highlighting the cooling impact of the ECB’s actions on the French economy. These trends suggest that the ECB’s initiatives to manage inflation and stabilize the eurozone economy are yielding significant effects, particularly in major economies like France.

This article was generated with the support of AI and reviewed by an editor.