The annual inflation rate in France rose to 0.9% in June 2025, defying forecasts that it would hold at May’s over four-year low of 0.7%, preliminary estimates showed. The uptick was mainly driven by higher services inflation (2.4% vs 2.1% in May), particularly in accommodation, health, and transport, as well as an increase in food inflation (1.4% vs 1.3%). Meanwhile, energy prices fell at a slower pace (-6.9% vs -8%), prices of manufactured goods declined at the same rate as the previous month (-0.2%), and tobacco inflation slowed slightly (4% vs 4.1%). On a monthly basis, the CPI rose 0.3%, rebounding from a 0.1% drop in May and above expectations of a 0.2% gain. Meanwhile, the EU’s annual harmonized inflation rate rose to 0.8% from 0.6%, above the forecast of 0.7%, while the monthly harmonized CPI increased 0.4%, reversing a 0.2% decline and exceeding the expected 0.2% rise.
