By Mucahithan Avcioglu
ISTANBUL (AA) - Consumer inflation in France rose 0.8% from a year ago in February, marking its lowest level since March 2021, according to preliminary data released on Friday on the eve of the European Central Bank deciding on interest rates.
The figure came below the market expectation of 1%, cooling down from January's 1.7%, data from statistical office Insee showed.
"The sharp slowdown in prices should be explained by a sharp fall back in energy prices: electricity prices should fall sharply over one month, whereas they had risen sharply in February 2024," it said.
Energy prices fell 5.7% year-on-year in February, reversing January's 2.7% rise.
The largest annual rise was seen in tobacco prices with 4.5% while food prices in February climbed 0.3%
On a monthly basis, consumer prices climbed 0.2%, below market forecasts of a 0.5% rise.
Year on year, the Harmonized Index of Consumer Prices rose 0.9%, after a 1.8% increase in the previous month.
The slowdown in inflation bolstered the case for further interest rate cuts by the European Central Bank.
While US tariffs continue to cause uncertainties in global markets, the ECB next week is due to release its latest interest rate decision.