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Finance

Posted By Global Banking and Finance Review

Posted on January 15, 2025

French inflation seen at 1.4% in 2025, budget minister says

PARIS (Reuters) - French budget minister Amelie de Montchalin said on Wednesday the government was targeting inflation of 1.4% this year and aiming for public spending cuts of between 30 billion euros ($30.9 billion) and 32 billion euros in the 2025 budget.

Montchalin also told TF1 television that the government was hoping to get a deal on the 2025 budget in parliament by end-January.

On Tuesday, during a speech to Parliament, French PM Francois Bayrou opened the door to renegotiating the disputed pension reform in a bid to win over left-wing lawmakers he needs to pass the 2025 budget.

Inflation measured by France's own consumer price index (CPI) was 1.3% over the year through December, in line with the 1.3% reported in November, according to preliminary data from statistics agency INSEE.

($1 = 0.9713 euros)

(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)

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