Increase in French inflation rate attributed to rising energy prices

France’s national public audit office has raised concerns about the country’s economic stability due to its €154bn public deficit and lagging public finances. The inflation rate for July was 2.3%, driven by a surge in energy prices, while services prices dropped. Unemployment figures for the second quarter improved to 7.3%. The audit office emphasized the need for France to reduce its deficit to avoid vulnerability to economic shocks. The recent political uncertainty following elections has also unsettled French stock markets. Paris Olympics is expected to boost the economy, but decisive action on public finances is crucial to secure the country’s economic future.

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