France Inflation Drops Below 1% on Energy Price Decline

France's inflation rate has continued to cool, with October figures showing an increase of just 0.9% year-on-year, down from 1.1% in September and below the European Central Bank's 2% target. This decline is largely attributed to a significant drop in energy prices and slower food inflation, while service prices remained stable. Despite political uncertainties, France's economy displayed resilience with stronger-than-expected third-quarter growth, supported by exports and business investment. The European Central Bank, led by President Christine Lagarde, has maintained interest rates steady, citing that monetary policy is currently appropriate amid persistent core inflation pressures across the eurozone. Inflation trends vary across Europe, with some countries like Germany and Spain showing different inflation trajectories, complicating the ECB's policymaking. Overall, the data suggest a cautiously optimistic outlook for inflation control without immediate rate cuts, as the ECB monitors ongoing economic dynamics.