FX.co ★ France Inflation Hits Nearly 3-Year High

France’s annual inflation rate climbed to 3.4% in October 2026, up from 3.1% in September and above market expectations of 3.2%, according to preliminary estimates. This was the highest rate since December 2023, largely reflecting a sharper rise in energy costs: energy inflation accelerated to 24.1% from 21.3%, driven by higher natural gas and petroleum product prices.

Services inflation also picked up, rising to 2.7% from 2.4%, while the decline in manufactured goods prices moderated, with prices falling 0.2% after a 0.3% drop in September. By contrast, food inflation eased to 1.2% from 1.4%, helped by more moderate increases in fresh food prices, and tobacco inflation held steady at 3.3%.

On a monthly basis, consumer prices rose 0.4% in October, reversing a 0.3% decline in September, supported by higher prices for services and energy, particularly gas, petroleum products, and electricity. The EU-harmonised inflation rate (HICP) accelerated to 3.8% year-on-year from 3.4%, while the monthly HICP increased 0.4% after a 0.3% fall in September.