Inflation & Prices

French Economy Unexpectedly Shrinks While Inflation Eases

  • French economy contrated 0.1% in third quarter vs +0.6% in 2Q
  • Consumer prices rose 3.8% from year ago in November; est. 4.1%
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France’s economy unexpectedly contracted in the third quarter and inflation in November slowed more than anticipated — prompting investors to step up bets that the European Central Bank will cut interest rates in the spring.

Gross domestic product fell 0.1% in the three months through September, revised down from a similar sized gain initially reported, French statistics agency Insee said on Thursday.