The French economy registered weak growth in Q3 this year, whilst household spending declined more than forecast in October, and inflation remained elevated at 7.1% this month.

Consumer spending in France edged down 2.8% month-on-month in October, against forecasts of a 0.6% dip. There was also a 7.9% fall in energy consumption due to soaring energy prices exacerbated by the war in Ukraine, Reuters reports.

This month, French consumer prices increased 6.2% year-on-year, the same as in October, reflecting a rise in food and manufactured goods prices and a marginal slowdown in energy prices. This is according to preliminary data from The National Institute of Statistics and Economic Studies, INSEE.

Furthermore, on an EU-harmonised basis, the year-on-year rate stayed at the 7.1% mark in November, in line with economists’ forecasts polled by Reuters.

INSEE also stated that Q3 economic growth in France stood at 0.2%, unchanged from an initial 0.2% estimate.

The French report follows on from weaker inflation readings for Germany, Spain and Belgium published on Tuesday. Statistics for the entire eurozone are due out on Wednesday, with economists forecasting a slight moderation, the first in 18 months.

This will give European Central Bank policymakers the last update on prices before 15th December, when a decision will be made on how much to hike borrowing costs aimed at reverting price gains towards the 2% target.

During the last two meetings, officials hiked rates by 75 basis points, and it remains to be seen whether the pace will slow to 50 basis point increases as the continent is on the verge of recession, BNN Bloomberg reports.

Earlier this week, European Central Bank President Christine Lagarde said she would be “surprised” if inflation has reached a peak, whilst Executive Board member Isabel Schnabel said it could be too soon to slow down the pace of rate hikes.