French inflation holds steady in March

France's annual inflation was stable at 1

France's annual inflation was stable at 1.2 per cent in March, according to data today that analysts said was unlikely to worry the European Central Bank (ECB).

The ECB said yesterday that the medium to long-term risk was for a pick-up in euro zone inflation. But consumer prices in France, the bloc's second biggest economy, remained broadly in check, rising 0.5 per cent on a monthly basis in March.

The monthly rise was in line with the consensus forecasts and came as the price of clothes and shoes rose following the end of the sales period, while higher petrol prices lifted energy costs.