Steady Inflation in France

The annual inflation rate in France remained unchanged at 0.8% in March, as confirmed by the country's statistical office INSEE. This figure aligns with the preliminary estimates, showcasing a slight monthly increase of 0.2% in the Consumer Price Index (CPI).

Key Drivers Behind the Figures

Service prices emerged as the primary contributor to the inflation rate, with a notable increase of 2.3%. However, this uptick was somewhat offset by a significant 6.6% drop in energy prices compared to the previous year. Additionally, food prices saw a modest rise of 0.6%, while tobacco prices surged by 4.1% from March 2024.

Core Inflation Remains Stable

Excluding the volatile sectors of food and energy, France's annual core inflation rate held steady at 1.3% in March, mirroring February's figures.