French inflation in June hit record high of 6.5%

PARIS: French inflation climbed further from the previous month to a record high of 6.5%, according to official preliminary figures on Thursday, adding further headwinds to the euro zone’s second-biggest economy.

The INSEE statistics agency said prices in June had risen by 0.8% from May, and that 12-month June preliminary inflation stood at 6.5%.

Analysts polled by Reuters had forecast preliminary annualised inflation in June at 6.3%.

INSEE said food and energy prices had risen sharply due to disruption resulting from Russia’s invasion of Ukraine.

ECB vows to counter ‘undesirably high’ inflation

French President Emmanuel Macron’s government is under pressure as a result of the higher living costs, while the European Central Bank has flagged it will raise rates in July and September to try and tackle the rising inflation.