French and Spanish Inflation Rises, Backing Stable ECB Rates

Inflation quickened more than anticipated in France and unexpectedly accelerated in Spain — supporting the European Central Bank’s stance that further cuts in interest rates aren’t needed.

Consumer prices in France rose 1.1% from a year ago after a 0.4% increase the previous month — well ahead of the 0.8% median Bloomberg survey of economists. In Spain, inflation inched up to 2.5% from 2.4%. Analysts had forecast a retreat to 2.3%.