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French Government Warns Low Inflation Has Created A 'Shock' And Now They're Going To Miss Their Budget Targets
French Finance Minister Michel Sapin has warned the government won't be able to meet its goal of $21 billion in savings because inflation is too weak. Consumer price increases excluding tobacco in France have slowed to 0.4%. Overall Euro zone inflation recently fell to 0.3%. "The inflation figures in the Euro zone have created a shock," Sapin told AFP in an interview. "We need a new discourse among political and economic actors. We must immediately take this into account as decisions get made." The normal policy levers used to fix growth have broken down, Sapin said. "The textbook is quite flexible in cases of ... (full story)