France's inflation rate rises to 1%

France's inflation rate climbed to 1 per cent in December, lifted by energy prices, Paris-based statistics office Insee said.

France's inflation rate climbed to 1 per cent in December, lifted by energy prices, Paris-based statistics office Insee said.

Prices rose more than the 0.9 per cent median forecast of 19 economists surveyed by Bloomberg News showed.

Prices advanced 0.3 per cent from November.

Tobacco prices jumped 1.5 per cent compared with November, and 6.0 per cent in the 12 months to end-December.

Oil prices edged down 0.6 per cent on the month but were up a sharp 3.6 compared with December 2008 when the cost of crude oil was nearly half its current levels.

Elsewhere, the cost of services rose 0.3 per cent on the month, and 3.5 per cent year-on-year.

A separate report from the Bank of France said the current account deficit narrowed to €3.8 billion in November from a revised €4.2 billion the previous month.

Agencies