(Adds details of government energy subsidies)
PARIS, Jan 31 (Reuters) - French inflation rose in
January on higher energy prices after the government phased out
some measures that had reined in increases, according to
preliminary figures released on Tuesday.
Consumer prices rose 0.4% from December, pushing the
12-month inflation rate to 7.0% from 6.7% the previous month,
European Union-harmonised data showed.
The inflation rate, which was in line with economists'
expectations, jumped on higher energy prices after the
government phased out a subsidy for car fuel at the end of the
year.
Meanwhile, regulated gas prices set by the government rose
15% at the start of the year, adding to further pressure on
energy prices. Regulated power prices are also set to rise 15%
in February.
Most economists expect inflation to resume a downward trend
once those increases in energy prices subside. Finance Minister
Bruno Le Maire has consistently said that he expects inflation
in France to recede from the middle of 2023 onwards.
Separately, INSEE said France managed to eke out 0.1% growth
in the final quarter of 2022 as falling energy imports and firm
business investment offset a pullback in consumer spending.
(Reporting by Sudip Kar-Gupta and Leigh Thomas;
Editing by Benoit Van Overstraeten and Jamie Freed)
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