FX.co ★ France Inflation Rate Slows to 0.9%

France's inflation rate decreased to 0.9% in August 2025, slightly below the predicted stability at July's 1%, based on preliminary figures. This deceleration was primarily due to a reduction in services inflation, which dipped to 2.1% from July's 2.5%, notably in the transport sector. Additionally, prices of manufactured goods decreased slightly faster at -0.3% compared to -0.2% previously. In contrast, the fall in energy costs lessened to -6.2% from -7.2%, while food inflation remained constant at 1.6%, and tobacco prices held steady at 4%. On a month-to-month basis, consumer prices increased by 0.4%, up from July's 0.2% increase, driven by a seasonal upswing in clothing prices post-summer sales, alongside modest rises in food and services, while energy saw a slight decline. The annual harmonized inflation rate decreased to 0.8% from 0.9%, with the monthly Harmonized Index of Consumer Prices (HICP) rising 0.5%, following a previous 0.3% increase.