03.02.202608:05:50UTC+00France Inflation Rate Lowest Since 2020

As of January 2026, France experienced a significant slowdown in its annual inflation rate, which dipped to 0.3%—the most modest level observed since late 2020. This marks a reduction from the previous month's figure of 0.8% and falls below the anticipated 0.6%, as per preliminary assessments. The primary factor for this deceleration lies in the reduced prices of manufactured goods, which saw a drop of 1.2%, compared to a 0.4% decline earlier. This change is largely attributed to discounts in clothing and footwear. The data collection period for this analysis included an extended 18 days of winter sales, compared to 13 days in January 2025.

Additionally, inflation in service prices decreased to 1.8% from 2.1%, particularly evident in the healthcare sector, where fee increases for medical practitioners were less pronounced than in the previous year. Energy prices also saw an accelerated decline, dropping by 7.8% as opposed to 6.8%. Meanwhile, tobacco prices experienced a slower increase due to base effects, moving up by 2.8% compared to the previous year's 4.1%. However, food price inflation witnessed a slight rise, reaching 1.9% from 1.7%.

On a monthly basis, the Consumer Price Index (CPI) registered a decrease of 0.3%, reversing the 0.1% increase seen in December and surpassing expectations of a 0.1% decline. In terms of the EU-harmonised CPI, there was a year-over-year increase of 0.4%, while a month-on-month decline of 0.4% was recorded.