France Inflation Picks Up in August

The annual inflation rate in France accelerated to 2.4% in August 2026, the highest reading since May, up from 2.1% in July, according to preliminary estimates. The pickup was mainly driven by a sharp acceleration in energy inflation, which rose to 16.7% from 12.6%, particularly for petroleum products. Meanwhile, the decline in manufactured goods prices eased to 0.4% from 0.7%, while food inflation edged up to 1.1% from 1.0%, led by faster increases in fresh food prices. In contrast, services inflation slowed to 2.0% from 2.2%, while tobacco inflation remained unchanged at 3.3%. On a monthly basis, the CPI rose 0.7%, the most since April, compared with market expectations and July’s 0.6% gain, as manufactured goods prices rebounded seasonally following summer sales, while energy and food prices also increased. The EU-harmonised annual inflation rate accelerated to 2.7% from 2.4%, while monthly HICP inflation rose to 0.8% from 0.6%.

The annual inflation rate in France accelerated to 2.1% in July 2026 from 1.8% in June, confirming preliminary estimates. The pickup was primarily driven by faster services inflation (2.2% vs 1.9% in June), particularly for other services (2.5% vs 2.1%), including accommodation (7.3% vs 6.3%) and food services (1.9% vs 1.8%). Energy price growth also accelerated (12.6% vs 11.0%), mainly for gas (17.7% vs 10.4%) and petroleum products (20.7% vs 19.7%). Meanwhile, food inflation edged up to 1.0% from 0.9%. In contrast, manufactured goods prices fell at a softer pace (-0.7% vs -1.1%), while tobacco inflation was unchanged at 3.3%. Core inflation accelerated to 1.3% from 1.0%. On a monthly basis, consumer prices rose 0.6%, rebounding from a 0.3% decline in June, driven by higher services prices (+1.6%) and energy costs (+2.3%), primarily petroleum products and gas. The EU-harmonised CPI rose 2.4% year-on-year, up from 2.0% in June, while increasing 0.6% month-on-month.

The annual inflation rate in France accelerated to 2.1% in July 2026, defying market expectations that it would hold at June's 1.8%, according to preliminary estimates. The pickup was mainly driven by faster increases in services prices (2.3% vs. 1.9% in June), particularly for accommodation and communication services, alongside stronger energy inflation (12.4% vs. 11.0%) amid higher gas and petroleum product prices. Meanwhile, the decline in manufactured goods prices eased (-0.7% vs. -1.1%), partly reflecting less pronounced seasonal sales effects, while food inflation held steady at 0.9% and tobacco inflation remained unchanged at 3.3%. On a monthly basis, consumer prices rose 0.6%, rebounding from a 0.3% decline in June, driven by seasonal increases in transport and accommodation services as well as higher energy prices. The EU-harmonised annual inflation rate also accelerated to 2.4% from 2.0%, while the monthly HICP increased 0.6% after falling 0.3% in June.