FX.co ★ French Producer Inflation Sharply Slows

In December 2025, French domestic producer prices saw a modest increase of 0.2% compared to the previous month. This marks a significant slowdown from November's adjusted 2.8% hike. The deceleration can be attributed to diminished price growth in sectors such as extractive industries, energy, and water, which rose by 2.9% compared to 10.8% in November. Meanwhile, prices for manufactured goods experienced a decline, decreasing by 0.6% following a 0.5% rise. There was also a notable decrease in costs for coke and refined petroleum products, which fell by 13.1% in contrast to the 7.8% increase witnessed previously. In contrast, food product prices registered a slight uptick of 0.1%, after a 0.2% decline in November. Annually, French domestic producer prices fell by 2.0%, marking the most significant decrease since January, and increasing from a revised decline of 1.5% in the preceding month. Excluding the broad category of energy (including hydrocarbons, coking, and refining products, electricity, etc.), French industrial production prices remained stable month-on-month after a 0.1% rise in November and continued to show a year-on-year increase of 0.4%, slightly down from 0.5%.