France

Bank of France Predicts Inflation Will Slow to 1.5% Next Year

The Bank of France cut its forecast for French inflation next year to well below the European Central Bank’s 2% target, adding to signals encouraging policymakers to pursue interest-rate cuts, Bloomberg News reported. The pace of annual price increases in the euro area’s second-largest economy will ease to 1.5% on average in 2025 from 2.5% in 2024, the Bank of France said in its September economic forecasts. That’s lower than the 1.7% it predicted in June, due mainly to expectations of weaker electricity prices. The Bank of France expects the rate to rise to 1.7% in 2026, it said on Tuesday.
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French Central Bank Sees Q3 Olympic Growth Boost

Hosting the Olympic Games gave a boost to France's service sector in August but the country's political crisis still clouds the economic outlook, the central bank said on Tuesday in its monthly business survey, Reuters reported. The euro zone's second-biggest economy is on course for underlying growth of 0.1-0.2% in the third quarter from the previous month, the Bank of France said, leaving its estimate unchanged. The Olympics could add another quarter percentage point of growth as the Games increased activity in hospitality, event management and security, particularly in the Paris region.
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French Inflation Falls to Target as Economy Grows Less Than Estimated

France’s rate of price rises eased below the European Central Bank’s target this month and the economy grew a little less than previously thought, adding impetus to calls for cuts to interest rates in the eurozone, the Wall Street Journal reported. Consumer prices rose 1.9% on year over the month in August, down from 2.3% a month earlier, according to provisional figures published Friday. That was in line with the expectations of economists polled by The Wall Street Journal and marks the first time in three years that inflation has come below the ECB’s targeted 2% rate.
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