France's Inflation Confirmed at 0.8% in March

The annual inflation rate in France remained steady at 0.8% in March, as confirmed by the country's statistical office INSEE. This figure aligns with the preliminary data released earlier. On a monthly basis, the Consumer Price Index (CPI) saw a modest increase of 0.2%.

Key Drivers Behind the Inflation Rate

The slight uptick in annual inflation was primarily driven by a 2.3% rise in service prices, which was somewhat offset by a significant 6.6% drop in energy prices compared to the previous year. Additionally, food prices experienced a 0.6% increase, while tobacco prices surged by 4.1% from March 2024.

Stable Core Inflation

Excluding the volatile food and energy sectors, France's annual core inflation remained unchanged at 1.3% in March, mirroring February's rate. This stability suggests underlying inflationary pressures are consistent, despite fluctuations in more volatile categories.