FX.co ★ France Inflation Rate Holds Below 1%

In March 2025, France's annual inflation rate stayed steady at 0.8%, maintaining its lowest point since February 2021, based on preliminary estimates. This stability resulted from an increase in service inflation, which grew to 2.3% from February's 2.2%, influenced by rising insurance and food prices, notably fresh produce. However, these increases were balanced by a decrease in energy prices, which fell to -6.2% from -5.8%, and a slight reduction in the price of manufactured goods, which shifted to -0.2% from 0%. Additionally, the growth rate of tobacco prices slowed to 4.1%, down from 4.5% in February. On a month-to-month basis, consumer prices experienced a 0.2% rise after remaining flat in the previous month, although this was below the forecasted 0.4% increase. The monthly rise was mainly driven by higher prices for manufactured goods, especially in the clothing and footwear sectors. The EU-harmonized annual inflation rate remained constant at 0.9%, with a 0.2% increase from the previous month.