France takes aim at inflation by subsidising utility bills at a cost of €15bn so far

French electricity bills would have risen by 45% this year, rather than by only 4% under the French government's current price shield, new figures show

French president Emmanuel Macron warned the French people there were tough months ahead.

The French government's decision to heavily subsidise electricity and gas bills of households and businesses is working to help push down the country's inflation below that in Ireland and Germany, but at a high cost of at least €15bn this year.    

In a new analysis, Capital Economics, said the French energy regulator figures show that French electricity bills would have risen by 45% this year, rather than by only 4% under the French government's current price shield.