French inflation eases to its lowest level in a year

French inflation has hit its lowest level in a year as the country’s energy and food prices cooled.

Prices rose 6 per cent in May, down from 6.9 per cent in April and lower than many predicted.

Energy costs rose just 2 per cent, compared to 6.8 per cent in April. Food prices fell to 14.1 per cent in May from 15 per cent.

The drop is expected to support the argument that the European Central Bank will not have to raise interest rates further as it fights to control inflation.

Last month it raised interest rates in the eurozone for the seventh time in a row, by 0.25 percentage points to 3.25 per cent. 

The case for easing off increases was boosted by data from Germany, where inflation fell to 6.3 per cent in May from 7.6 per cent in April.