French Inflation Picks Up Pace as ECB Looks Likely to Keep Rates in Place

Annual inflation picked up pace in France at the end of the summer, despite a political stalemate holding back economic activity, as the European Central Bank looks likely to keep interest rates untouched.

Consumer prices rose 1.1% on year this month, EU-harmonized figures published by the country’s statistics authority showed Tuesday. That was a little less than economists had expected and keeps the rate below the 2% level targeted by the ECB, but nonetheless marks an increase to the fastest rate of annual inflation since the beginning of the year.