FX.co ★ France Inflation Accelerates to 1.2%

The inflation rate in France climbed to 1.2% in September 2025, up from 0.9% in August, marking its highest point since January. This rate, however, slightly missed the anticipated 1.3%, according to preliminary estimates. The increase was predominantly fueled by a rise in services inflation, which increased to 2.4% from 2.1% in the previous month. This reflects a smaller decline in communication costs and an uptick in health service prices. Additionally, energy costs decreased at a slower rate (-4.5% compared to -6.2%) due to a base effect related to petroleum products. The food and tobacco sectors experienced slight price increases, with food inflation moving to 1.7% from 1.6% and tobacco rising to 4.1% from 4.0%. Conversely, the prices of manufactured goods saw a slightly faster decline, at -0.4% compared to -0.3%. On a month-to-month basis, consumer prices fell by 1%, following a 0.4% increase in August. This represents the steepest drop since September 2024 and is largely attributed to seasonal reductions in transport, specifically airfares, and accommodation services. In addition, the harmonized inflation rate increased to 1.1% from 0.8% year-over-year, while month-on-month prices decreased by 1.1% following a 0.5% rise.