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French Inflation Edges Lower, Further Easing to Follow
Thursday, 30 October 2008 07:54:47 GMT
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French September PPI decelerated to 6.1% y/y from 6.9% y/y in August, with prices down 0.4% m/m as prices for food and energy declined. Energy prices were down 2.0% m/m and prices for food and agricultural products dropped 0.6% m/m. So the two main driving factors for previous price increases are now starting to moderate, which confirms that inflation has peaked and while still high, is likely to come down faster than previously feared. This will give the ECB room to follow other central banks and cut rats by 50 bps next week.
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