Amadeusz Juskowiak

Balladur expects improved february inflation data

The French inflation rate is expected to show a substantial improvement in February after Januarys very high 09 pct monthly rate Finance Minister Edouard Balladur said

He told a French television interviewer that half of the high January rise which took year on year inflation that month to three pct was due to higher oil prices

Now taking account of this inflation index our forecast for price rises this year is two and a half pct he said

Balladur said the upward revision of the inflation target which the government had initially set at two pct for this year should not affect wage expectations for this year

There is no reason to envisage a change in our wage policy he said referring to the governments aim of holding public sector wage increases to three pct this year

Price inflation last year fell to 21 pct from 47 pct in 1985

REUTER