The French economy grew a faster-than-expected 3% in Q3, fuelled by an increase in consumer spending and exports as the Eurozone's second largest economy recovers from the COVID-19 pandemic.

Finance Minister Bruno Le Maire said that the figure was an "extraordinary outcome" that demonstrated the economy was on the right track. According to the INSEE national statistics agency, France's economy was near to returning to its pre-COVID-19 levels in Q3.

The Q3 results were praised as "great news" by analysts at investment bank ING, but they warned that they could be a high for the year as the global economy grapples with inflationary fears and supply chain issues. "The pinnacle has been achieved, and economic growth will now begin to decelerate," ING said.

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France's EU-harmonised rate of inflation jumped to 3.2 % YoY in October, up from 2.7% the previous month, as the cost of energy jumped 20.1%, INSEE reported, and prices increased by 0.5% MoM.

Central banks around the world have signalled tighter policy in response to rising prices, however ECB's President Christine Lagarde pushed back against market expectations that price pressures will prompt an interest rate hike as soon as next year.

Higher energy prices, a global imbalance between rising demand and supply, and one-off base effects, like the end of a German sales tax cut, are the three primary causes boosting Eurozone inflation temporarily, according to Lagarde.

INSEE predicts the French economy will grow 6.25% in 2021.