31.10.202508:00:03UTC+00France Inflation Rate Slows More than Expected

The annual inflation rate in France decreased to 1% in October 2025, a reduction from September's rate of 1.2% and lower than the anticipated 1.1%, as per preliminary estimates. This deceleration was primarily influenced by a more pronounced drop in energy prices, declining by 5.6% compared to a 4.4% decrease in September, mainly due to lower costs for gas and petroleum products. Additionally, food inflation saw moderation, decreasing to 1.3% from 1.7%. The prices for services increased by 2.4% and tobacco prices by 4.1%, maintaining the same growth rate as September. However, prices for manufactured goods saw a slightly faster decline, falling by 0.5% compared to a previous 0.4% drop. On a month-to-month basis, the Consumer Price Index (CPI) increased by 0.1%, following a significant 1.0% decrease in September, aligning with predictions. This adjustment primarily mirrors the rise in prices for services and manufactured goods. According to the EU-harmonised index, the annual inflation rate decreased to 0.9%, below both the 1.1% recorded in September and market expectations of 1%. The index experienced a 0.1% month-on-month increase after a 1.1% decrease in the earlier period, in line with forecasts.