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2026-05-29 14:56:32
[French Inflation Rises to 2.8% in May, a More Than Two-Year High] ⑴ Driven by the conflict with Iran, rising energy prices have led to France's inflation rate climbing to its highest level in over two years this month, raising expectations that the European Central Bank will raise interest rates for the first time since 2023 at its June meeting. ⑵ Prior to the end of last year, year-on-year inflation rates in several major Eurozone economies had been declining, with France's year-on-year inflation rate falling to 0.4% in January. However, after the closure of the Strait of Hormuz led to higher oil and gas prices, inflation surged in March. ⑶ According to harmonized EU data released by the French National Institute of Statistics and Economic Studies (INSEE) on Friday, French consumer prices rose 2.8% year-on-year in May, accelerating from 2.5% in April. This is the highest level since February 2024, further deviating from the European Central Bank's 2% target. ⑷ INSEE stated that year-on-year energy inflation rose to 16.8% from 14.3% in April, while service price increases accelerated slightly. (5) Before prices accelerated, Insee’s consumer confidence index fell to a three-year low in May, and business sentiment in France also declined.
