FX.co ★ France July Inflation Confirmed at 2.1%

France’s annual inflation rate accelerated to 2.1% in July 2026, up from 1.8% in June, confirming preliminary estimates. The increase was largely driven by faster services inflation, which rose to 2.2% from 1.9%. Within services, “other services” saw inflation climb to 2.5% from 2.1%, with notable increases in accommodation (7.3% vs 6.3%) and food services (1.9% vs 1.8%).

Energy prices also rose at a faster pace, up 12.6% year-on-year compared with 11.0% in June, mainly due to higher gas prices (17.7% vs 10.4%) and petroleum products (20.7% vs 19.7%). Food inflation edged up slightly to 1.0% from 0.9%. In contrast, prices for manufactured goods continued to fall, though at a slower rate (-0.7% vs -1.1%), while tobacco inflation remained stable at 3.3%. Core inflation picked up to 1.3%, from 1.0% in the previous month.

On a monthly basis, consumer prices rose 0.6% in July, rebounding from a 0.3% decline in June. This turnaround was mainly driven by higher services prices (+1.6%) and energy costs (+2.3%), particularly for petroleum products and gas. The EU-harmonised consumer price index (HICP) increased 2.4% year-on-year, up from 2.0% in June, and also rose 0.6% on a month-on-month basis.