France closed in 2021 with slower inflation, as energy prices moderated during the period.
- Inflation closed in at 3.4% in December, slightly slower than economists’ expectations of 3.5%. This is also contrary to an upward trend seen in other economies during the month.
- The slowdown comes after the surge in energy costs in the previous months, giving the European Central Bank more leeway to establish monetary policy stimulus measures in its latest meeting.
- The latest reading showed that lower energy prices offset the growth in prices of food and manufactured goods, along with the lower inflation in services to 1.8% from 1.9% recorded in November.
Other European territories remain under pressure, with Spain reporting its highest rate in three decades.