France's INSEE agency said core inflation fell to -0.2pc in November in clearest sign yet that economy is succumbing to deflationary forces.
The national statistics office INSEE says consumer price index fell by 0.3% last month amid wider fears of deflation across Eurozone.
French statistics office Insee said prices in January fell by 0.6% compared with previous month, prompting economists to warn of possible deflation.
Last month, French President François Hollande announced a programme to cut public spending by a further 50 billion euros by 2017, on top of 14 billion euros already set to be saved during 2014. Mediapart economy and finance specialist Martine Orange analyses the potentially disastrous effects that such drastic and unprecedented austerity measures may entail for both France and the rest of Europe at a time when economies across the continent are threatened by deflation.