The French economy witness anemic growth in Q3, and inflation is at a record high

The French economy posted anemic growth in the third quarter, household spending weakened and a massive jump in inflation in October signaled headwinds looming in the fourth quarter.

Preliminary data from the National Institute of Statistics and Economic Studies showed that the economy grew by 0.2% in the July-September period, in line with market expectations.

Meanwhile, consumer prices jumped significantly in October. Inflation rose 1.3 percent month-on-month, with oil product costs and food prices driving the upward trend.

The institute said annual inflation reached 7.1%, compared to 6.2% a month ago, exceeding a record rate of 6.8% in July.

The October rise in inflation followed two consecutive months of slowing consumer price increases. France has done well compared to its neighbors in curbing price hikes, although some economists warn that big spending on social protection for families is piling up problems for what lies ahead.

The French data comes a day after the European Central Bank raised interest rates again, and the bank raised its deposit rate by 75 basis points to 1.5%, the highest rate since 2009.