In a surprising turn of events for the French economy, the Harmonized Index of Consumer Prices (HICP) rose to 0.4% in June 2025, ending its brief sojourn into negative territory from the previous month. The latest figures, updated on July 11, mark a reversal from the -0.2% reading recorded in May, offering a snapshot of economic recovery in France's consumer inflation landscape.
June's positive movement in the HICP, which measures the average change in prices paid by consumers for goods and services over time, suggests an uptick in consumer demand and potentially easing deflationary pressures that had marked the previous month's figures. The month-over-month comparison reflects a shift from the discouraging contraction seen earlier, showing signs of revitalized activity in the French market.
Economists and policy-makers will closely monitor whether this upward trajectory in consumer prices will sustain, especially as they aim to stabilize the economic environment amidst external global uncertainties. The data serves as both a relief and a signal for cautious optimism as France navigates its post-pandemic economic adjustments.
