Published by Global Banking & Finance Review®
Posted on July 11, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleFrench inflation adjusted to 0.9% in June due to rising service costs, aligning with euro zone trends. Core inflation and energy prices also saw changes.
(Reuters) -French consumer prices rose more than initially estimated in June, confirming a broader euro zone trend of gradually rising inflation as service costs accelerate and declines in energy price moderate.
France's harmonized inflation rate, adjusted for comparison with other euro zone countries, was revised up to 0.9% year-on-year in June from a preliminary reading of 0.8%, statistics office INSEE said on Friday. That was up from 0.6% in May.
A Reuters poll of 15 analysts had forecast 0.8% for harmonized inflation, with estimates ranging from 0.8% to 0.9%.
The uptick was driven by accelerating service prices, which rose 2.4% annually in June versus 2.1% in May. INSEE attributed this to faster growth in accommodation, transport and healthcare costs.
Energy prices fell 6.7% compared to June 2024, a smaller decline than May's 8.0% drop.
Core inflation, excluding volatile food and energy prices, edged up to 1.2% from 1.1%, while food price inflation accelerated slightly to 1.4% from 1.3%.
The domestic consumer price index climbed 1.0% annually.
The slight increase aligns France with the broader euro zone, where inflation reached the European Central Bank's 2% target in June.
Despite this rise, France continues to record one of the lowest inflation rates in the 20-nation bloc.
The ECB cut interest rates in June after inflation fell just below its target, with President Christine Lagarde signalling a potential break with further policy easing.
However, persistent service price pressures across the euro zone have raised concerns about domestic inflation becoming entrenched above target levels.
(Reporting by Gianluca Lo Nostro; Editing by Milla Nissi-Prussak)
Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.
Core inflation measures the long-term trend in prices by excluding volatile items such as food and energy, providing a clearer view of underlying inflation.
Service costs refer to the expenses associated with providing services, which can include wages, materials, and overhead costs.
The consumer price index (CPI) is an economic indicator that measures changes in the price level of a basket of consumer goods and services.
Energy price inflation refers to the increase in prices specifically for energy-related products, such as oil, gas, and electricity.
Explore more articles in the Finance category
