France October inflation accelerates as energy prices surge, keeping ECB rate hike bets alive

France October final CPI +3.4% vs +3.4% y/y prelimPrior +3.1%France October final HICP +3.7% vs +3.8% y/y prelimPrior +3.4%The final report here confirms a further acceleration in French inflation pressures to start the final quarter of the year.

That owes much to another jump in energy prices, which climbed by another 1.9% on the month and are up by 24.1% compared to October last year.

The annual estimate is once again after after the estimates for August and September of +16.7% and +21.3% respectively.That being said, core annual inflation also picked up in October in moving to 1.7% - up from 1.5% in September.

That comes as services inflation continues to rise further as well, moving up to 2.6% in October - up from 2.4% in September and 1.9% in August.

Ouch.With that, it reaffirms that price pressures in Europe's second-largest economy are continuing to intensify and at a rather awkward time.

With French growth conditions struggling and fiscal risks mounting, it is making for a rather untimely backdrop for policymakers to be dealing with stronger inflation.As such, that will keep ECB policymakers on their toes in navigating the next steps.

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