French CPI rose to 0.9% in December, from 0.4% previous revised down to -0.2% and compared with the forecasted 0.8%. On the month, the reading inclined to 0.3% from 0.1%, also higher than estimates of 0.2%.
With regard to CPI EU Harmonised, it reached 1.0%, the highest in 10 months, above both previous and forecasts of 0.5% and 0.9% respectively. On the monthly basis, the reading inched up to 0.3% from both prior and anticipated of 0.2%.
Prices acceleration was driven by the improvement seen in the French economy since the second quarter and due to the resurgence in energy prices. GDP for both second and third quarters achieved growth of 0.3%, leaving the worst recession since WWII. Also, crude prices jumped to near 16-month high above $83 a barrel in December after touching its lowest in February below $33 a barrel.