The French inflation rate is expected toshow a substantial improvement in February after January's very
high 0.9 pct monthly rate, Finance Minister Edouard Balladur
said.
    He told a French television interviewer that half of the
high January rise, which took year on year inflation that month
to three pct, was due to higher oil prices.
    "Now, taking account of this inflation index, our forecast
for price rises this year is two and a half pct," he said.
    Balladur said the upward revision of the inflation target,
which the government had initially set at two pct for this
year, should not affect wage expectations for this year.
    "There is no reason to envisage a change in our wage policy,"
he said, referring to the government's aim of holding public
sector wage increases to three pct this year.
    Price inflation last year fell to 2.1 pct from 4.7 pct in
1985.
 REUTER
