The annual inflation rate in France eased to 1.8% in June 2026 from an over two-year high of 2.4% in May, confirming preliminary estimates. The slowdown was primarily driven by a sharp moderation in energy price growth (11.0% vs 16.6% in May), particularly for petroleum products. Services (1.9% vs 2.1%) and food (0.9% vs 1.1%) inflation also eased, while prices for manufactured goods fell at a faster pace (-1.1% vs -0.6%), partly reflecting calendar effects, as the June price collection period included three days of seasonal sales compared with none a year earlier. In contrast, tobacco inflation edged up to 3.3% from 3.2%. Core inflation slowed to 1.0% from 1.5%. On a monthly basis, consumer prices fell 0.3%, the first decline since January, driven by a sharp drop in energy prices, particularly petroleum products. The EU-harmonised CPI also rose 2.0% year-on-year, down from 2.8% in May, while falling 0.3% on the month.

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