FX.co ★ France Producer Prices Return to Fall

In August 2025, the French domestic market experienced a decline in producer prices by 0.2% on a month-over-month basis, contrasting with an upwardly revised 0.5% increase in July. This represents the most significant monthly deflation since May. The decrease was notably observed in the prices of manufactured goods, which fell by 0.3%, reversing the 0.2% increase seen in the previous month. This decline was primarily driven by a substantial drop in the prices of coke and refined petroleum products, which plummeted by 5.8%, following a 3.9% increase in July. Furthermore, there was a decrease in prices within the extractive industries, energy, and water supply sectors, with a 0.2% drop compared to a 2% rise previously. This change reflects reduced costs in gas trade services through mains, correlated with shifts in wholesale market prices. On an annual basis, producer prices exhibited a modest increase of just 0.1% in August, down from the 0.5% rise documented in the preceding month.