French inflation has not increased as much as expected, indicating a decrease in consumer confidence and remaining well below the European Central Bank's target of 2%.

This could support arguments for further interest rate cuts as the economy shows signs of weakening.

According to the latest data from the national statistics agency Insee, consumer prices in France rose by 1.7% year-on-year in November, which was lower than the predicted increase of 1.8% for the month. The inflation figures present an ongoing challenge for policymakers as they try to balance stimulating growth with controlling prices in the second-largest economy in the euro zone.