French inflation has risen to a new record high of 6.5%, exacerbating the cost of living crisis gripping the country and putting Emmanuel Macron’s government under pressure to provide solutions.
Statistics agency INSEE statistics said that prices had risen in June by 0.8% compared to the previous month, and that 12-month June preliminary inflation was 6.5%. Analysts had predicted that the figure would stand at 6.3%.
INSEE said tha food and energy price increases were the major driving force behind the alarming numbers.
The Macron administration is facing growing calls to do more to help households struggling with increased living costs. Economists have warned that whilst bringing down inflation may cause short-term pain it is imperative that governments do so.
France is by no means alone in its battle with inflation. In Spain, 12-month inflation rose to 10.2%, the highest level since 1985. Germany received some good news with a slight drop in its rate for June, but inflation is still riding high at 8.2%.
The European Central Bank (ECB) has said it will increase rates in July and September in an attempt to stem rising inflation.
ECB President Christine Lagarde said the low inflation of the pre-pandemic era was unlikely to return and that it was crucial that the ECB acted early because price growth was likely to exceed the 2% target for a number of years.