French Inflation Hits 3.7%, Highest Since 2023, as Energy Jumps 24%

Consumer prices in France rose 3.7% in October from a year earlier on the EU's harmonised measure, statistics office INSEE said Friday, up from 3.4% in September. That's the highest since December 2023, Reuters reported, though it was a touch below the 3.8% first estimate.

Energy prices were up 24.1% on the year, INSEE said, the fourth straight month the pace has quickened. Gas alone rose 5.5% in October from September.

Two measures, one country

France publishes two inflation numbers. The national CPI rose 3.4%. The harmonised index (HICP) is built the same way in every euro zone country so they can be compared, and it gives more weight to some items. That weighting gap explains almost all of the 0.35-point difference this month, INSEE said. The HICP is the one the European Central Bank uses for its 2% target.

Core inflation, which leaves out volatile items such as energy and fresh food, rose to 1.7% from 1.5%. That is still below the ECB's 2% goal. Services inflation rose to 2.6% from 2.4%. Food went the other way, slowing to 1.2%.

On the month, prices rose 0.4% after a 0.3% fall in September, with transport services up 8.5%.

| Measure | October | September |
|---|---|---|
| HICP, year on year | 3.7% | 3.4% |
| CPI, year on year | 3.4% | 3.1% |
| Core | 1.7% | 1.5% |

France is the euro zone's second-largest economy. In crypto, bitcoin was near $69,250 at 5:57 a.m. ET, down 5.6% over 24 hours, per CoinGecko.