French inflation rose to its highest annual level in at least 11 years in January, reinforcing public concerns about rising living costs that have damaged President Nicolas Sarkozy's popularity.
Prices paid by consumers in the euro zone's second biggest economy were flat month on month but climbed 3.2% from a year earlier on an EU harmonised basis, driven by jumps in energy and food prices, national statistics office INSEE said today.
That year-on-year increase was bigger than the 3% forecast by analysts and the highest rate on record for annual EU harmonised inflation data, which was first compiled in January 1997.
Opinion polls show the growing cost of living is French voters' main concern, notably rising food prices.
January's inflation data showed food prices rose 1.4% compared with the previous month and 4.2% year on year in January. Energy also played a big role, with prices in the energy segment rising 12.3% from a year earlier and petrol products jumping 19.1%.
However, prices paid for services rose 2.3% year on year - the lowest level since September 2006.
