French Inflation Rises to 1.1 Percent in February Report
French consumer prices rose by 1.1 percent in February as energy costs fell less than expected. This acceleration follows a five-year low recorded in January.
Preliminary data released by the statistics agency INSEE on Friday reveals that consumer prices in France climbed more than anticipated in February. This shift marks a notable acceleration after inflation cooled to its lowest point in more than five years during the month of January. The harmonized inflation rate, adjusted for comparison across the euro zone, stood at 1.1% year-on-year for February, surpassing the median estimate of 0.7% from a Reuters poll of 14 analysts whose projections spanned from 0.6% to 1.2%. By comparison, harmonized prices in the euro zone rose by only 0.4% in January, the lowest rate recorded since late 2020. The uptick in February was attributed in part to a smaller-than-expected decrease in energy costs, alongside a slowing decline in the prices of manufactured goods and accelerating price hikes for food, services, and tobacco. These trends were observed despite the introduction of a 15% average reduction in regulated electricity tariffs for low-volume consumers in February 2025, a factor that continues to influence the year-on-year statistical comparisons.
