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French inflation steady in December at 1.3%

France's inflation rate fell below the ECB's 2% target last year
France's inflation rate fell below the ECB's 2% target last year

France's annual inflation rate remained steady in December, with prices of manufactured goods falling again while those for energy rebounded slightly, official figures showed today.

Consumer prices in the euro zone's second biggest economy rose by 1.3%, the same pace as in November, according to the INSEE statistics institute.

But the inflation indicator favoured by the European Central Bank - the harmonised index of consumer prices - rose in December to 1.8% compared to 1.7% the month before.

Euro zone inflation data is due later today.

France's inflation rate fell below the ECB's 2% target last year.

The central bank has started to cut interest rates after having hiked them to tame inflation, which has soared following the Covid pandemic and Russia's invasion of Ukraine.