(MENAFN) According to data released on Tuesday by Insee, the nation's statistics office, inflation in France surged in January as the government gradually removed certain policies intended to rein in skyrocketing energy and food costs.
The standardized European Union gauge of rate rise increased by 7 percent from a year earlier, according to early estimates, following a 6.7 percent gain in December. On the other hand, based on the research, inflation increased when the government ended a subsidy for automobile gasoline at the end of the year, which was in accordance with forecasts.
In line with Reuters, a 15 percent increase in government-regulated gas prices at the beginning of the year put additional pressure on energy bills. According to the site, regulated electricity costs would also increase by 15 percent in February.
In the meanwhile, experts anticipate that when energy price hikes slow down, France's inflation is going to begin to decline. Reduced energy costs and rising inflation are the nation's main economic priorities, according to Finance Minister Bruno Le Maire. He anticipates a decline in inflation starting in the middle of the current year.
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