France household confidence rose to 86 in July from 84, the highest since March
and one point above economists' median forecast of 85, Insee said. The index
remains well below its 100 long-term average. Consumption has been weak as
Households face accelerating inflation and government cuts to fuel subsidies
aimed at reining in a large budget deficit; Q2 data due later this week are
expected to show growth of just 0.2%. The ECB last week said the full effects of
the energy shock have not yet been felt and, while it held rates in July,
flagged upside risks to prices. Insee's inflation-expectations indicators showed
a smaller share of households saying prices rose over the past year and a marked
narrowing in the gap between households expecting faster inflation and those
that do not.
