France's statistics service INSEE reported today that Gross domestic product (GDP) at 2000 prices, working day and seasonally-adjusted data, increased by 1.1% to 1.2% in the second quarter of 2006.The GDP estimate rise for 2006 is forecast between +1.8% and +1.9%.
The Finance and Economy Minister Minister Thierry Breton said that figures were the best France had achieved for 20 years and that at this rate growth for the whole year would be 3%.
"The figures published by INSEE this morning are quite exceptional. The French economy is doing better, it's doing well, it's even doing very well,' Breton said during an interview on French radio.
INSEE also reported today that in July 2006, the consumer price index for all households in the whole of France fell by 0.2 %. The year-on-year price increase was 1.9 %.
The price index adjusted for seasonal variations rose by 0.1% as in the previous month.
The underlying inflation indicator was up 0.1 % month-on-month like in June and climbed 1.3 % year-on-year (+1.2 % last month).
In July, consumer price index decrease was explained by opposite movements. Due to summer sales, prices of clothing and footwear dropped and prices of other manufactures declined. That was combined with seasonal fall in prices of fresh produce.
