France Inflation Surprisingly Rises to 0.9%

The annual inflation rate in France eased to 1.8% in June 2026 from an over two-year high of 2.4% in May, confirming preliminary estimates. The slowdown was primarily driven by a sharp moderation in energy price growth (11.0% vs 16.6% in May), particularly for petroleum products. Services (1.9% vs 2.1%) and food (0.9% vs 1.1%) inflation also eased, while prices for manufactured goods fell at a faster pace (-1.1% vs -0.6%), partly reflecting calendar effects, as the June price collection period included three days of seasonal sales compared with none a year earlier. In contrast, tobacco inflation edged up to 3.3% from 3.2%. Core inflation slowed to 1.0% from 1.5%. On a monthly basis, consumer prices fell 0.3%, the first decline since January, driven by a sharp drop in energy prices, particularly petroleum products. The EU-harmonised CPI also rose 2.0% year-on-year, down from 2.8% in May, while falling 0.3% on the month.

The annual inflation rate in France slowed to 1.8% in June 2026 from 2024-highs of 2.4% in May, and below expectations of 2.1%, preliminary estimates showed. The decline in inflation was primarily driven by a sharp slowdown in energy price growth, particularly for petroleum products, although energy prices remained significantly higher than a year earlier (11.2% vs 16.6% in May). Services (1.8% vs 2.1%) and food (0.9% vs 1.1%) inflation also eased while prices for manufactured goods declined at a faster pace (-0.9% vs -0.6%), partly due to calendar effects, as the June data collection period included more days of seasonal sales than in the previous year. In contrast, tobacco prices increased at a slightly faster pace (3.3% vs 3.2%). Compared to the previous month, the CPI declined 0.2%, the first fall in five months, led by a sharp decline in energy prices, mainly petroleum products. Considering the EU-harmonised CPI, prices rose 2% yoy (vs 2.8% in May) and dropped 0.3% on the month.

France’s annual inflation rate rose to 2.4% in May 2026, picking up from 2.2% in April, confirming preliminary estimates. This marked the highest level since February 2024, driven mainly by higher energy prices (16.6% vs 14.3% in April), largely due to a sharp rebound in gas prices (11.3% vs -3.1%). Services inflation also rose to 2.1% from 1.8%, while food prices slowed slightly to 1.1% from 1.2%. Prices for manufactured goods fell by 0.6%, and tobacco inflation remained steady at 3.2%. On a monthly basis, the CPI increased by 0.1% in May, slowing sharply from 1.0% in April, as energy prices rose at a slower pace (0.6% vs 4.7%), with higher gas prices partly offset by a decline in petroleum products (-1.9% vs 8.2%). Food prices rose 0.3%, driven by fresh products, while manufactured goods edged up 0.1%, and services and tobacco were stable. Meanwhile, the EU-harmonised annual inflation rate rose to 2.8% from 2.5%, while monthly CPI increased by 0.1% following a 1.2% rise in April.