FX.co ★ CAC 40 Drifts Lower Before Elections

On Friday, French stocks declined as investors anticipated the upcoming parliamentary elections, with recent polls indicating a likely first-round victory for far-right parties.

In economic developments, France's consumer price inflation decelerated in June, reaching its lowest level in nearly three years due to a reduced pace in food and energy cost increases, according to preliminary estimates from the statistical office INSEE.

The consumer price index rose by 2.1 percent year-over-year in June, compared to a 2.3 percent increase in the prior month.

This marks the slowest inflation rate since August 2021, when prices had increased by 1.9 percent.

Similarly, EU-harmonized inflation edged down slightly to 2.5 percent from 2.6 percent in the previous month.

Additionally, a separate official report revealed that producer prices fell for the sixth consecutive month in May.

The benchmark CAC 40 index dropped 30 points, or 0.4 percent, to 7,501, following a 1 percent decline on the previous day.