FX.co ★ France Inflation Rate Unexpectedly Picks Up

France’s annual inflation rate accelerated to 2.1% in July 2026, according to preliminary estimates, surprising markets that had expected it to remain at June’s 1.8%. The upturn was largely driven by faster growth in services prices (2.3% vs. 1.9% in June), particularly in accommodation and communication services, as well as stronger energy inflation (12.4% vs. 11.0%) amid rising gas and petroleum product prices.

At the same time, the decline in prices for manufactured goods moderated (-0.7% vs. -1.1%), in part due to a smaller impact from seasonal sales. Food inflation was stable at 0.9%, and tobacco inflation was unchanged at 3.3%.

On a monthly basis, consumer prices rose 0.6%, rebounding from a 0.3% drop in June. This increase was supported by seasonal rises in transport and accommodation services and by higher energy prices. The EU-harmonised inflation rate also picked up, with annual HICP inflation rising to 2.4% from 2.0%, while the monthly HICP advanced 0.6% after a 0.3% decline in June.