Le Maire French inflation should fall to around 4 this year
Livret A increase to take effect in February

PARIS, Jan 13 Reuters France39;s Livret A bank savings rate held by millions of customers across the country will be raised to 3 from 2, Finance Minister Bruno Le Maire announced on Friday after the country39;s national central bank earlier suggested the move.

The rate, which determines the guaranteed and taxfree returns consumers obtain for placing a limited amount of money into a special account managed by their personal bank, will still be well below France39;s current headline inflation rate of 6.7.

Top officials, including Le Maire, had recently flagged the move, citing the changing macroeconomic environment and recent interest rate hikes by the European Central Bank.

The rate of another savings account, the socalled 39;People39;s Savings Account39; Livret d39;Epargne Populaire, LEP, will also be raised to 6.1 from 4.6.

Contrary to the Livret A, access to that account is conditioned by people39;s yearly earnings that must be below a certain threshold.

France39;s statistics office earlier on Friday confirmed inflation in France fell to 6.7 in December from 7.1 in November.

Le Maire said his ministry expects the French inflation rate to decline to around 4 over the course of 2023.

Yes the times are hard but we continue to protect the French people, he said.

Reporting by Tassilo Hummel; Editing by Sudip KarGupta

Source Reuters