Economics

French Inflation Set to Near 7% as Services Drive Prices

  • Wages and prices are interacting, statistics agency Insee says
  • Euro area’s second-largest economy seen growing 2.3% in 2022
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France’s inflation rate will keep climbing to stabilize between 6.5% and 7% in the fall as wages and services interact to drive prices higher, the country’s statistics agency Insee said.

In its first full-year economic outlook -- entitled “War and Prices” -- Insee said it expects services to become the main contributor to inflation in the euro area’s second-largest economy, taking over from energy prices that jumped following Russia’s invasion of Ukraine.