The French economy is expected to grow by 0.2% in the first half of the year, down from the initial forecast of 0.3%, due to higher inflation linked to the war in Iran. Inflation is set to surpass 2% in coming months, up from the 1.1% rate in February.

The French economy will grow by only 0.2% in the first half of the year instead of the 0.3% forecast, the Insee national statistics agency said Tuesday, citing higher inflation linked to the war in Iran. Inflation will surpass 2% in coming months, rising sharply from the 1.1% rate seen in February.