French Inflation Tops Expectations as Energy Prices Climb
By Ed Frankl
French inflation was higher than expected this month, reflecting enduring energy-price pressures that could push European Central Bank policymakers to raise interest rates again next month.
Consumer prices were 3.4% higher in September than the same month last year, up from 2.6% in August, according to France's statistics agency Insee Wednesday, adjusted to European Union measures. That was higher than the 3.1% expected by economists polled by The Wall Street Journal.
Energy costs were 21% higher than September last year--up from 17% in August--after fuel prices rose this month on escalating tensions in the Middle East. Services-sector inflation also increased, as did price rises for food, Insee said.
The ECB earlier this month raised its key rate, with policymakers judging it couldn't "look through" the recent jump in oil and gas prices.
Inflation data for Spain and Belgium published Tuesday also showed price growth well above the ECB's 2% target. Investors are about evenly split between whether the central bank will hike or not on Oct. 29.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
September 30, 2026 03:12 ET (07:12 GMT)
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