French Inflation Hits Four-Year Low in May

French inflation dropped to a more than four-year low in May 2025, with the EU-harmonized consumer price index rising just 0.6% year-on-year—the lowest rate since December 2020 and below analyst expectations of 0.9%. The slowdown was driven by an 8.1% decline in energy prices compared to May 2024 and slower increases in service costs, notably in transportation and communication. Food price inflation edged up to 1.3%, while manufactured goods prices declined by 0.2% and tobacco inflation remained at 4.1%. The monthly consumer price index slipped by 0.1%. These developments reinforce expectations of a potential European Central Bank interest rate cut next month. The data highlights persistent disinflationary pressures in France as inflation remains well below the ECB’s 2% target.