Following the release of the French growth and inflation data, French Finance Minister Bruno Le Maire said that “inflation is going down, and is actually going down quite strongly.”

Additional takeaways

“Maintain economic growth forecast for 2023 of 1.0%.”

“Could use taxation measures if companies do not do enough to help bring down food price inflation.”

French final Gross Domestic Product (GDP) was confirmed at 0.2% QoQ in the first quarter. Meanwhile, the country’s Consumer Price Index (CPI) dropped 0.1% on a monthly basis in May. The consensus forecast was for a 0.3% increase in the reported period.

Market reaction

The Euro is meeting fresh supply on the softer French inflation data. EUR/USD is dropping 0.46% on the day to trade at 1.0685, as of writing.