French Inflation Edges Higher to 0.9% in June

France's inflation rate accelerated to 0.9% year-on-year in June 2025, surpassing forecasts that expected the rate to hold steady at 0.7%, according to preliminary data from the statistical office INSEE. This rise was driven primarily by higher inflation in services, particularly in accommodation, health, and transport, which increased to 2.4%, alongside a slight uptick in food inflation to 1.4%. Energy prices continued to decline but at a slower rate than in previous months, falling 6.9% compared to an 8% drop in May. The EU harmonized inflation rate for France also increased to 0.8%, above expectations of 0.7%, reflecting a broader trend across the eurozone. Monthly consumer price indices rebounded with a 0.3% increase, reversing the previous month's decline. Despite this acceleration, inflation remains well below the European Central Bank's 2% target, and producer prices rose for the first time in 18 months in May, signaling potential shifts in inflationary pressures.