France: homeowners hail inflation spike

France inflation has risen to a 17 year high, but homeowners are not complaining...

According to statistics institute INSEE, France's annual inflation rate rose to 3.2% last month - the highest in 17 years.

Food and energy price hikes are said to be the main contributing factor to the increase, with food prices up 5.3% year-on-year and energy prices up 12.7% since last year.

The pound continues to weaken against the euro, with recent figures revealing that the exchange rate was down to €1.25 to the pound..

This makes the cost of living in France pricier for Britons hoping to enjoy an early retirement, but it's good news for those who already own French property, as the increase in value of the euro means that properties have grown in value by almost a fifth.

Eurozone suffering similar fate

The trend for high inflation continues across the Eurozone, with inflation soaring again in March, fuelling concerns of an ‘inflation spiral’.

The European Union's Eurostat data agency said in a first estimate that 12-month inflation in the eurozone jumped to 3.5 percent in March, up from 3.3 percent in February and slightly above economists' forecasts for 3.4 percent.

The figure, which came amid record oil prices of around 110 dollars a barrel, was far above the European Central Bank's comfort zone of just under 2.0 percent.