Inflation Picks Up in France as Recession Risks Mount

France faces an imminent technical recession as Q1 GDP was revised down to -0.1% and consumer demand falters while inflation rose to 2.4% in May.

Key Takeaways

• 1.French inflation rose to 2.4% in May, primarily driven by energy prices (+16.8%), while HICP reached 2.8%.
• 2.France is likely entering a technical recession following a downward revision of Q1 GDP to -0.1% and expected contraction in Q2.
• 3.Domestic demand is weakening significantly, with household consumption and consumer confidence hitting multi-month lows.

Table of Contents

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