Thursday, March 12, 2009

French inflation bounced back

French inflation bounced back in February after falling for several months, but the rebound shouldn't last, as "in months to come, inflation will be dragged down due to important basis effects in the energy sector," BNP Paribas economist Frederique Cerisier says. Also, lower industrial production and overcapacities mean that core inflation will be lower, she says. Says inflation rate in France should turn negative before summer.

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