FRENCH INFLATION AT 2.2% IN OCTOBER STILL OVER THE ECB TARGET

Pushed up by higher o il prices and the rise in taxes on energy and tobacco, French inflation (CPI) increased by + 2.2% YoY in October , as expected . French consumer prices were almost stable (+ 0.1% MoM ) in October (vs -0.2% in September) . This is due to an increase by +1. 8 % MoM in energy , which more than offset s the decline of food prices (-0.2% M oM), while the prices of manufactured products and services remained unchanged. Outlook : French inflation (CPI) is expected to remain almost stable at around +2.1% YoY until the end of the year. After 1% in 2017 on average, French inflation (CPI) should strongly increase, reaching on average + 1.9% in 2018 and + 1.8% in 2019 i n 2019.