2025.09.1206:58:08UTC+00France August Inflation Confirmed at 0.9%

In August 2025, France experienced a deceleration in its annual inflation rate, reducing to 0.9% from July's 1%, corroborating initial projections. This slowdown was chiefly attributed to the deceleration in service price growth, which decreased to 2.1% from 2.5%, along with a slightly greater decline in manufactured goods prices, which dropped to -0.3% from -0.2%. Although energy prices continued to fall, the pace was less severe, easing to -6.2% from -7.2%. Meanwhile, food and tobacco prices maintained their July growth rates at 1.6% and 4.0%, respectively. Month-on-month, consumer prices saw a 0.4% increase, aligning with preliminary figures and up from the 0.2% rise recorded in July. This increase was largely driven by a bounce-back in manufactured goods prices, which surged by 1.3% compared to the previous decline of -2.4%; this included a notable rise in clothing and footwear prices, which jumped 5.6% reversing the prior -9.3% drop, attributed to the conclusion of summer sales. Service prices saw a modest increase of 0.2%, compared to a 1.3% rise earlier. Food prices rose by 0.3% following a period of stability. Additionally, the annual harmonized inflation rate slowed to 0.8% from July's 0.9%, while the monthly Harmonized Index of Consumer Prices (HICP) climbed 0.5%, up from 0.3%.