France's annual inflation rate eased a touch in April after scaling its highest level in more than a decade in March.
Consumer prices in the euro zone's second biggest economy rose 0.4 per cent in April compared with the previous month and 3.4 per cent compared with a year earlier, according to EU harmonised data today that matched consensus forecasts.
The annual inflation rate eased from 3.5 per cent in March but analysts said they expected consumers to continue to scale back spending on manufactured goods as the surging price of food and energy gobbled up increasing amounts of their income.
Recent data has shown French consumers' spending fell far more sharply than expected in March and their confidence sank to its lowest in more than two decades in April as they became gloomier about the outlook for their living standards.
These trends could persist given inflation looks likely to remain stubbornly high for some time, analysts said.
A breakdown of the inflation report showed energy prices rose 1 per cent from the previous month and 12 per cent from a year earlier. Food prices climbed 0.7 per cent on the month and 5.2 per cent on the year.
A measure of underlying inflation, which strips out volatile fresh food and energy costs as well as regulated prices, showed more subdued gains than the headline index, rising 0.1 per cent from the previous month and 2 per cent from a year earlier.
European Central Bank Governing Council member Christian Noyer, who is the governor of the Bank of France, said yesterday the ECB sought to look beyond short-term price shocks to underlying trends in inflation.