Stable Inflation Amid Rising Energy Prices

In December, France's annual inflation rate was confirmed at 1.3%, as reported by INSEE, the country's statistical office. This figure aligns with the preliminary estimate, showing a slight month-over-month increase of 0.2% in the Consumer Price Index (CPI).

Energy and Service Prices Drive Inflation

The stability in the annual inflation rate can be largely attributed to a 1.2% increase in energy prices. However, this was somewhat offset by a slower rise in service prices, which increased by 2.2% compared to the previous year. Food prices remained stable, while tobacco prices saw a significant jump of 8.7% from December 2023.

Core Inflation Slightly Down

Excluding food and energy, France's annual core inflation rate stood at 1.3% in December, a slight decrease from November's 1.5%.