French inflation flat in July, energy prices ease

France’s annual inflation rate remained unchanged at 1.0 per cent in July 2025, according to a provisional estimate released by the National Institute of Statistics (INSEE). The flat reading mirrors June’s rate, as easing energy costs offset modest increases in food and service prices.

The faster decline in energy prices was largely driven by a base effect, with July 2024 having seen a sharp rise in gas prices.

Manufactured goods prices continued to fall at the same pace as the previous month, while food and service prices edged up slightly.

On a monthly basis, consumer prices rose 0.2 per cent in July, slowing from a 0.4 per cent increase in June.

The uptick was mainly attributed to seasonal increases in transport and accommodation services, along with a modest rise in energy prices. However, summer sales pushed down prices of manufactured goods, while food and tobacco prices remained flat.

The Harmonised Index of Consumer Prices (HICP), used for EU-wide comparisons, also held steady at 0.9 per cent year-on-year, with a 0.3 per cent month-on-month rise following June’s 0.4 per cent increase.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser