French consumer prices rose 2.5% year-on-year in June, according to the country’s statistics office INSEE. This confirms the preliminary reading released in late June and represents a slight slowdown from May’s 2.6% inflation rate. The slowdown can be attributed to weaker energy price inflation, particularly for petroleum products, and smaller increases in food prices. However, prices for services accelerated slightly while those for manufactured goods and tobacco remained stable.
On a monthly basis, prices increased by 0.2% in June, a slight upward revision from the initial estimate of 0.1%. This follows a 0.1% rise in May. Overall, these figures suggest that inflation in France is showing signs of slowing down. However, the acceleration in service prices indicates a mixed picture for the overall economy.
France’s economy remains closely watched by economists as it is the second-largest economy in the Eurozone. The French government has implemented a range of measures to address the rising cost of living, including price controls on essential goods and energy subsidies. It remains to be seen whether these measures will be sufficient to curb inflation and ease the pressure on households.