France, the second-largest economy in the eurozone, witnessed a slowdown in inflation during October. This slowdown was primarily due to lesser price increases in critical sectors such as energy, food, and goods. The Consumer Price Index (CPI) rose by 4.0% year-on-year, decelerating from September’s 4.9%, aligning with economists’ predictions as per a Wall Street Journal poll.
Energy inflation, a significant contributor to the overall inflation figures, fell into single digits at 5.2%. Meanwhile, services inflation saw a slight increase, ticking back up to 3.2%. This data suggests that the European Central Bank’s (ECB) stringent monetary policy is moderating demand across the eurozone.
The impacts of this tight monetary policy are also reflected in France’s economic growth figures for the third quarter. The nation’s GDP growth for Q3 slowed to a mere 0.1%, further illustrating the cooling effect of the ECB’s measures on the French economy. These trends indicate that the ECB’s efforts to control inflation and stabilize the eurozone economy are having noticeable effects, particularly in significant economies like France.
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