France Inflation Rate Lowest Since 2020

2026-02-03 08:05 By Joana Taborda 1 min. read

France’s annual inflation rate slowed to 0.3% in January 2026, the lowest since late 2020, down from 0.8% in December and below expectations of 0.6%, according to preliminary estimates.

The deceleration was mainly driven by a decline in manufactured goods prices (-1.2% vs -0.4%), largely reflecting price cuts in clothing and footwear.

The data collection period covered 18 days of winter sales, up from 13 days in January 2025.

Service price inflation also eased (1.8% vs 2.1%), particularly in healthcare, as increases in doctors’ fees were more limited than last year.

Energy prices fell at a faster pace (-7.8% vs -6.8%), while tobacco prices rose more slowly due to base effects (2.8% vs 4.1%).

By contrast, food price inflation edged slightly higher (1.9% vs 1.7%).

On a month-on-month basis, the CPI fell by 0.3%, reversing a 0.1% increase in December and exceeding expectations of a 0.1% decline.

Considering the EU-harmonised CPI, prices rose 0.4% on the year and fell 0.4% on the month.



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France Inflation Rate Lowest Since 2020
France’s annual inflation rate slowed to 0.3% in January 2026, the lowest since late 2020, down from 0.8% in December and below expectations of 0.6%, according to preliminary estimates. The deceleration was mainly driven by a decline in manufactured goods prices (-1.2% vs -0.4%), largely reflecting price cuts in clothing and footwear. The data collection period covered 18 days of winter sales, up from 13 days in January 2025. Service price inflation also eased (1.8% vs 2.1%), particularly in healthcare, as increases in doctors’ fees were more limited than last year. Energy prices fell at a faster pace (-7.8% vs -6.8%), while tobacco prices rose more slowly due to base effects (2.8% vs 4.1%). By contrast, food price inflation edged slightly higher (1.9% vs 1.7%). On a month-on-month basis, the CPI fell by 0.3%, reversing a 0.1% increase in December and exceeding expectations of a 0.1% decline. Considering the EU-harmonised CPI, prices rose 0.4% on the year and fell 0.4% on the month.
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