France's annual inflation rate held steady at 1.3% in December 2024, matching the rate from the previous month and falling short of market forecasts of 1.5%, according to preliminary estimates.
France inflation remains at 1.3% in December
Energy prices rebounded (1.2% vs. -0.7% in November), but this was offset by a slowdown in food prices, which stalled at 0% (down from 0.2%). Prices for tobacco (8.7%) and services (2.3%) remained unchanged, while deflation persisted in manufactured products (-0.4% vs. -0.3%).
Back to inflation MoM
On a monthly basis, consumer prices rose by 0.2% in December, recovering from a 0.1% decline in November, largely driven by higher transportation service costs. The EU-harmonised CPI inched up to 1.8% in December from 1.7% in November, slightly below the expected 1.9%, and rose 0.2% month-on-month.
