FX.co ★ French HICP Shows Unexpected Drop in May, Turning Negative at -0.2%

In an unexpected turn, the French Harmonized Index of Consumer Prices (HICP) registered a significant decline in May, standing at -0.2%, according to the latest update on June 13, 2025. This comes after the index held steady at a positive 0.7% in April 2025, marking a notable shift within a month.

The HICP, an essential indicator of consumer price inflation and used primarily to compare inflation across EU countries, has not only ceased its prior upward trajectory but has dipped into negative territory. The month-over-month comparison shows that the price index, which measures the changes in the goods and services purchased by households, experienced a decline that might prompt concern over potential deflationary pressures in the French economy.

This downward shift in the HICP indicates an overall decrease in consumer prices, suggesting reduced pricing power amid possibly softening demand or other inflationary dynamics. Analysts and policymakers will likely scrutinize these developments closely, as they could signal broader economic challenges or shifts in consumption patterns within France, potentially affecting the wider European economic landscape.