French Inflation at the fastest rate in 12 years.

Inflation in France has accelerated to 3.2 percent, which is up from 2.8 percent in December. The figures are based on European Union-harmonized methods and published by the National Statistics Bureau in Paris.

This has resulted in higher food and energy costs in the country as consumer prices have climbed by an annual 3.2 percent.

The sharp increases in consumer prices have exceeded the European Central Bank’s ceiling of below 2 percent.

Both including President Nicolas Sarkozy and Finance Minister Christine Lagarde have lobbied the European Central Bank to concentrate on facilitating economic growth rather than withholding the rate of inflation.

With energy costs climbing12.3 percent, fresh food costs up 3.3 percent tobacco prices up by 6.3 percent the French households are playing the inflation bill.

This pressure has seen Sarkozy’s own popularity at it lowest ebb since gaining the presidency in May.

Mathieu Plane a leading Parisian economist has said that “The risk is that oil prices translate into higher wages and lead to an inflationary spiral,’ which is a situation that the ECB and all European countries will be keen to avoid.

Story link: French Inflation at the fastest rate in 12 years.