As part of our partnership with Forbes magazine, read an opinion piece by Julien Moussavi, economist at BSI Economics, on the return of inflation in France:
https://www.forbes.fr/finance/inflation-en-france-signe-t-elle-un-veritable-retour/
On October 11, the French National Institute of Statistics and Economic Studies (INSEE) published French inflation figures for September 2018. Consumer prices rose by 2.2% year-on-year. This figure is above the European Central Bank’s (ECB) medium-term target of consumer price growth « close to but below 2% » on an annualized basis, and this acceleration could therefore have an impact on the ECB’s monetary policy, which remains very accommodative. However, the recent strengthening of consumer prices may only be temporary, given that underlying inflation (which excludes the most volatile prices such as energy and certain foodstuffs) has remained firmly below 1% since 2012. It therefore seems legitimate to ask whether inflation is making a real comeback in France and, more broadly, in the eurozone, or whether this is more of a misleading statistical trend.
