France Inflation Confirms 0.9% Annual Rise August

Inflation in France for August 2025 was confirmed at 0.9% year-on-year, slightly lower than July's 1.0%, with a monthly increase of 0.4%, matching preliminary estimates. Energy prices fell by 6.2% annually, while food inflation remained steady at 1.6%. Core inflation, which excludes volatile food and energy prices, eased to 1.2% from 1.5% in July. The harmonized inflation index, used by the European Central Bank (ECB), rose 0.8% annually and 0.5% monthly. The Services Purchasing Managers' Index (PMI) showed improvement, increasing to 49.6 in June, indicating a near return to expansion, while Manufacturing PMI declined further to 48.1, signaling ongoing contraction. These mixed economic signals, with easing inflation and weak manufacturing, may encourage the ECB to continue supportive monetary policies to foster growth.