French economy ekes out meagre growth in Q3, inflation jumps

France's economy eked out meagre growth in the third quarter as household spending stagnated and a sharp jump in inflation in October pointed to the headwinds looming in the final quarter of the year.

France's economy grew 0.2% in the July-September period, in line with market expectations, preliminary data from the INSEE official statistics agency showed.

Meanwhile, consumer prices in October spiralled higher. On an EU-harmonised basis, inflation rose 1.3% month-on-month, driven upwards by petrol product costs and food prices. The year-on-year rate came out at 7.1% versus 6.1% a month earlier, INSEE said.


The data comes a day after the European Central Bank raised interest rates again, worried that rapid price growth is becoming entrenched. It lifted its deposit rate by a further 75 basis points to 1.5% - the highest rate since 2009.