France Inflation Rate Rises from 5-Year Low

France’s annual inflation rate accelerated to 1% in February 2026, up from 0.3% in January which was the lowest reading since December 2020, and above market expectations of 0.8%, according to preliminary estimates. The rebound was partly driven by a more moderate decline in energy prices (-3% compared with -7.6% in January), reflecting a base effect linked to electricity prices, which had fallen sharply in February 2025. Meanwhile, prices of manufactured goods declined at a slower pace (-0.3% vs -1.2%). At the same time, food price inflation accelerated to a two-year high of 2.1% (from 1.9%), while services inflation edged up to 1.8% (from 1.7%) and tobacco prices rose at a faster annual rate of 3% (from 2.7%). Compared to the previous month, the CPI went up 0.7%, the most in two years, after a 0.3% gain in January. Considering the EU-harmonised CPI, the annual inflation went up to 1.1% from 0.4%, much higher than forecasts of 0.7%.

France’s annual inflation rate eased to 0.3% in January 2026, down from 0.8% in December, confirming preliminary estimates. This marked the lowest reading since December 2020, driven mainly by a sharper fall in energy prices (-7.6% vs -6.8% in December) and deeper declines in manufactured goods (-1.2% vs -0.4%). Price growth also moderated for services (1.7% vs 2.1%) and tobacco (2.7% vs 4.1%). In contrast, food price inflation accelerated to 1.9% from 1.7%, supported by higher prices for fresh vegetables, citrus fruits, and meat. Meanwhile, core inflation fell to 0.7% from 1.1%. On a monthly basis, consumer prices declined 0.3% after rising 0.1% in December, with seasonal discounts in clothing and footwear contributing to the drop. In EU-harmonised terms, inflation slowed to 0.4% year-on-year, while prices fell 0.4% month-on-month.

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.