France GDP Growth Confirmed; Inflation Accelerates

France’s economy expanded as initially estimated in the third quarter and consumer price inflation accelerated in November driven by food and services costs, official data showed Friday.

Gross domestic product climbed 0.3 percent sequentially, the same pace of growth as seen in the second quarter. The rate matched the estimate published on October 30.

The growth was driven by consumption and investment, while exports remained weak. Household and government spending grew 0.4 percent and 0.5 percent, respectively.

Gross fixed capital formation climbed 1.2 percent. Exports fell 0.1 percent, while imports grew 0.7 percent.

Consumer price inflation rose to 1 percent in November, as expected, from 0.8 percent in October, provisional estimate from Insee showed. Final data is due on December 12.

Food prices grew 2.1 percent and services cost climbed 1.3 percent, while energy prices were down 0.7 percent.

On a monthly basis, consumer prices edged up 0.1 percent after staying flat a month ago. Economists had forecast prices to remain unchanged in November.

Inflation, based on the harmonized index of consumer prices, climbed to 1.2 percent from 0.9 percent in October and exceeded the forecast of 1.1 percent. Month-on-month, the HICP gained 0.1 percent, offsetting a 0.1 percent fall in October. The index was expected to remain flat on month.

Another report showed that producer prices in domestic market fell 0.1 percent on month, taking the annual decline to 1.4 percent in October.

In October, household consumption recovered on manufactured goods spending and food product purchases. Household spending gained 0.2 percent, reversing a 0.3 percent drop in September. Nonetheless, this was slightly slower than the expected 0.3 percent increase.

Energy consumption fell 1.5 percent, while manufactured goods purchases advanced 0.3 percent and food product purchases moved up 0.8 percent.

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