FX.co ★ French HICP Turns Negative in January, Signaling Deflationary Pressure

France’s Harmonised Index of Consumer Prices (HICP) slipped into negative territory in January 2026 on a month-over-month basis, underscoring a notable shift in short-term price dynamics. According to data updated on 18 February 2026, the HICP fell by 0.4% compared with the previous month, after edging up by 0.1% month-over-month in January 2026 relative to the prior period.

The month-over-month comparison framework shows that the latest reading represents a clear reversal from the mild inflation previously recorded. While a single negative print does not establish a sustained deflation trend, the move from +0.1% to -0.4% suggests easing price pressures at the start of the year, a development that will be closely watched by policymakers and investors assessing the trajectory of inflation in France and the wider euro area.