France’s growth rate falls to zero.

French economic growth dropped to zero in the first quarter of this year, according to the national statistics agency, as people cut down on spending due to rising costs and the situation in Ukraine.

The outcome was less than expected, with the central bank estimating 0.25 percent year-on-year growth, underscoring Europe’s economic difficulties.

The annual inflation rate jumped to 4.8 percent in April, up from 4.5 percent the previous month, according to INSEE in a separate statement.

The zero growth number puts a stop to France’s amazing economic rebound following the Covid-19 outbreak, putting President Emmanuel Macron, who was re-elected last weekend, under pressure.

In the fourth quarter of 2021, the GDP increased by 0.8 percent, compared to 3.0 percent in the third.

This year, supply challenges related to the virus, followed by the conflict in Ukraine, have affected European economy, as have sanctions imposed on Russia following its invasion of its neighbor on February 24.

Many customers report that the soaring price of fuel, which has reached all-time highs, is causing them to cut back on their purchases.

The French government cut the price of gasoline at the pump by 15 centimes per liter in April, which INSEE expected would impact the headline inflation rate.

The government has also imposed a price cap on oil and gas this year, with a total aid package of almost $25 billion.