Paris, France (AHN) – France registered an inflation rate of 2.4 percent in August, up from 2.1 percent in July.

It is the fastest rate of increase in almost three years following the jump in prices of manufactured goods and cost of energy. The 2.4 percent consumer price index rate was higher than economists’ expectation of 2.2 percent.

The rate was calculated on a harmonized European Union method.

Manufacturing goods prices rose 1.6 percent and energy prices went up 0.4 percent. However, food prices went down 0.2 percent due to a seasonal drop in fresh produce prices.

The European Central Bank raised key lending rates two times in 2011, but last week said the risk of recession is greater than the threat from inflation.

View full post on Interest Rate Stories