France Inflation Almost Doubles in March

The annual inflation rate in France jumped to 1.7% in March 2026, its highest level since January 2025, up from 0.9% in February and slightly above expectations of 1.6%, according to preliminary estimates. The increase was largely driven by a strong rebound in energy prices, which rose for the first time since early 2025 (+7.3% vs -2.9% in February), particularly for petroleum products, reflecting the impact of the war with Iran. Service prices also edged higher (1.7% vs 1.6%), as did tobacco prices (3.2% vs 3%). In contrast, prices for manufactured goods declined at a faster pace than in February (-0.6% vs -0.2%), while food price inflation eased slightly (1.8% vs 2%). Compared to the previous month, the CPI went up 0.9%, the most since February 2024, also due to energy. Meanwhile, the EU-harmonised CPI increased 1.9% on the year, the highest reading since August 2024, and 1.1% on the month, the biggest jump since August 2023.

France’s annual inflation picked up to 0.9% in February 2026 from 0.3% in January, but was revised lower from initial estimates of 1%. The rise reflected a moderation in energy price declines (-2.9% vs -7.6%), driven by a base effect on electricity (-3.6% after -14.6%) and smaller drops in petroleum products. Manufactured goods prices also fell slightly (-0.2% vs -1.2%). Meanwhile, food inflation accelerated to 2% from 1.9%, led by fresh products (+1.8%), fruits and vegetables (+19.8%), and meat (+3.4%). Tobacco rose 3.0% from 2.7%, while services slowed to 1.6% from 1.7%. Annual core inflation came at 0.9%. On a monthly basis, the CPI rose 0.6% after a 0.3% decline in January, driven by seasonal rebounds in transport (+4.1%) and manufactured goods (+1.4%), including the end of clothing and footwear sales (+5.9%). The EU-harmonised CPI rose 1.1% year-on-year, after 0.4% in January, while the monthly HICP increased 0.7% after a 0.4% decline.

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%.