France’s inflation rate has fallen to a five-year low and remains below the European Central Bank’s 2% target, given falling energy prices.
Consumer prices rose 0.4% year-on-year in January, after rising 0.7% in December, according to data from Statistics France.
The data showed that French inflation fell in the past month, due to the impact of industrial goods, especially clothing and footwear, given the longer winter sale period compared to last year.
Lower energy and clothing prices contributed to the decline, but service prices fell below 2% for the first time in four years.
gradual rise
Economists had expected core inflation to start to rise gradually due to power prices, despite continued downside risks from a stronger euro.
Yesterday, France adopted its long-awaited 2026 budget after two no-confidence motions were defeated. This allowed the bill to be passed and paved the way for a period of relative stability under Prime Minister Sebastian Recorno’s minority government.
France’s inflation rate has fallen to a five-year low and remains below the European Central Bank’s 2% target on the back of falling energy prices.
According to French government statistics, consumer prices rose 0.4% year-on-year in January, after rising 0.7% in December.
Data showed that inflation in industrial goods, particularly clothing and footwear, fell last month in France amid a longer winter shopping season compared to last year.
Lower prices for energy and clothing contributed to the decline, but service prices fell below 2% for the first time in four years.
gradual increase
Economists expect core inflation to start to rise gradually due to power prices, despite continued downside risks from a stronger euro.
France approved its long-awaited 2026 budget yesterday after two no-confidence motions were defeated. This allowed the bill to be passed and paved the way for a period of relative stability for Prime Minister Elisabeth Borne’s minority government.
