French inflation slowed to its lowest annual rate for 16 months, as falling energy costs reduced consumer price growth in the eurozone’s second-largest economy to 5 per cent in June from 5.3 per cent the previous month.
The figure released by the French national statistics institute was in line with economists’ forecasts in a Reuters poll, offering some relief ahead of the publication of price data for the wider eurozone on Monday that is expected to show an overall decline.
In a further positive sign for the single currency bloc, the French economy rebounded in the three months to June, growing at a faster than expected 0.5 per cent from the previous quarter as rising exports more than offset a fall in household spending.
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