Inflation in France is 1 percent

France 's annual inflation rate remained stable at 1 percent in July 2025, unchanged from June, according to preliminary estimates, in line with market expectations. Energy prices fell more sharply (-7.2 percent, versus -6.7 percent in June), largely due to the base effect of the significant increase in gas prices in July 2024. Prices of manufactured goods continued to fall at the same pace as in June (-0.2 percent). In contrast, food prices rose slightly more (1.6 percent to 1.4 percent), and services prices also rose (2.5 percent to 2.4 percent). Month-on-month, consumer prices rose by 0.2 percent in July, following a 0.4 percent increase in June, exceeding forecasts for a 0.1 percent increase. The main upward pressure came from seasonal increases in service costs, particularly transport and accommodation, and, to a lesser extent, higher energy prices. Meanwhile, manufactured goods prices fell due to summer sales. Using the EU-compatible index, the annual inflation rate remained constant at 0.9 percent, while the monthly rate decreased to 0.3 percent.