France Inflation Hits 3%, Budget Deficit Under Scrutiny as Borrowing Plan Looms

French inflation accelerated to 3.0% year-on-year in September, driven by energy costs, while household goods spending contracted 0.5% in August, signaling demand weakness. The government faces a 340 billion euro borrowing program and must defend its deficit trajectory in the upcoming 2027 budget, raising concerns about fiscal sustainability and market pressure.