Inflation in France came to 1.5% in 2005 and 0.1% in December compared with November, the national statistics institute INSEE reported today, citing
final figures for the year.
Finance Minister Thierry Breton said the inflation figure was 'quite reasonable'. Analysts had foreseen annual inflation of 1.6%, with consumer prices rising 0.2% in December from the previous month.
European Central Bank head Jean-Claude Trichet said yesterday that the 12-nation euro zone, which includes France, was facing inflationary pressures. This suggested to traders that the bank might approve another increase in interest rates following its December 1 decision to tighten euro zone monetary policy. The bank's preferred inflation rate is just under 2%.
Elsewhere in the euro zone, Spanish inflation came to 3.7% last year and 0.2% in December, according to the national statistics agency.
