Annual Inflation Rate in France

In February, France witnessed its annual inflation rate decrease to 0.8%, as reported by INSEE, the country's statistical office. This figure confirms the preliminary data released earlier. The Consumer Price Index (CPI) saw a modest increase of 0.2% from the previous month.

Factors Behind the Decline

The significant drop in the annual inflation rate can be largely attributed to a sharp 5.8% decrease in energy prices. Additionally, service prices rose at a slower pace compared to the same period last year, with an increase of just 2.2%. Meanwhile, food prices experienced a slight acceleration, reaching 0.3%, and tobacco prices saw a 4.5% increase, down from 6.0% in February 2024.

Core Inflation Rate

Excluding food and energy, the annual core inflation rate in France was recorded at 1.3% in January, showing a slight decrease from January's figure of 1.4%.