French Inflation Takes a Dive in February

In a surprising turn of events, France's Consumer Price Index (CPI) experienced a significant decrease, dropping to an annual rise of 0.8% in February. This marks the first time inflation has fallen below 1% since February 2021, according to preliminary data from INSEE, the country's statistical office.

The unexpected decline, from January's 1.7%, was largely due to a 5.7% drop in energy prices compared to the same month in 2024. However, not all sectors followed this trend. Tobacco prices saw a sharp increase of 4.5%, and service prices rose by 2.1%.

Monthly Inflation Remains Steady

On a monthly basis, the inflation rate showed no change in February. The Harmonized Index of Consumer Prices (HICP) also remained consistent, with a year-on-year rate of 0.9%, mirroring the previous month's figures.