The annual inflation rate in France jumped to 1.7% in March 2026, its highest level since January 2025, up from 0.9% in February and slightly above expectations of 1.6%, according to preliminary estimates. The increase was largely driven by a strong rebound in energy prices, which rose for the first time since early 2025 (+7.3% vs -2.9% in February), particularly for petroleum products, reflecting the impact of the war with Iran.

Service prices also edged higher (1.7% vs 1.6%), as did tobacco prices (3.2% vs 3%). In contrast, prices for manufactured goods declined at a faster pace than in February (-0.6% vs -0.2%), while food price inflation eased slightly (1.8% vs 2%). Compared to the previous month, the CPI went up 0.9%, the most since February 2024, also due to energy. Meanwhile, the EU-harmonised CPI increased 1.9% on the year, the highest reading since August 2024, and 1.1% on the month, the biggest jump since August 2023.

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