FX.co ★ French Producer Prices Post Biggest Drop in a Year

French domestic producer prices fell by 2.1% month-on-month in April 2026, reversing a revised 1.9% increase in March and marking the sharpest decline since April of the previous year. The downturn was largely driven by a steep drop in prices for mining, quarrying, energy, and water (-10.9% vs +0.7% in March), primarily reflecting a 22.1% plunge in electricity prices (vs -0.2% in March). This decline in electricity costs was linked to lower wholesale market prices, higher renewable energy output, and weaker demand due to milder temperatures.

These effects were partly offset by an acceleration in gas prices, which rose 6.5% after a 2.4% increase in March, amid tensions associated with the conflict in the Middle East.

Elsewhere, price growth for manufactured products slowed sharply to 0.7% from 2.3% in March. Within this category, prices for food products, beverages, and tobacco fell by 0.3%, following a 0.2% rise previously. Prices for coke and refined petroleum products also decelerated markedly, rising 4.1% after a 53.1% surge in March, as oil prices eased in April following the earlier spike.

On an annual basis, domestic producer prices were up 2.1% in April, after remaining unchanged in March.