France inflation rate confirmed at over four-year low

The annual inflation rate in France was confirmed at 0.8% in April 2025, holding steady for the third consecutive month and marking its lowest level since February 2021.

France inflation rate confirmed at over four-year low

The persistence of subdued inflation reflects ongoing weakness in key price categories, underscoring the challenges facing policymakers as they balance disinflationary pressures against signs of nascent recovery in other areas of the economy. Energy prices remained the primary drag on overall inflation, falling sharply by 7.8% in April after a 6.6% decline in March. The continued slide was mainly attributed to lower prices for petroleum products, amid easing global oil markets, as well as a decline in electricity tariffs, further relieving cost pressures for consumers and businesses. Manufactured goods also continued to post negative inflation, with prices falling 0.2% year-on-year, reflecting persistent deflationary trends in consumer electronics, clothing, and household appliances. On the other hand, food prices offered some upward pressure, accelerating to 1.2% in April from 0.6% in the prior month, driven by higher costs for fresh produce and meat. Service sector inflation also edged higher, rising to 2.4% from 2.3% in March. The increase was largely fueled by a rebound in transport prices, particularly airfares, which resumed their upward trajectory following seasonal demand and higher fuel surcharges.

Monthly figures

On a monthly basis, consumer prices rose by 0.6%, marking the largest increase since February 2024. The monthly gain was driven primarily by the uptick in services—especially transport—and the acceleration in food prices, reflecting both seasonal effects and lingering supply-side bottlenecks. The figure came in slightly above the preliminary estimate of 0.5%, signaling a marginally stronger pass-through of price increases than initially anticipated. Similarly, the EU-harmonized inflation rate held steady at 0.9% in April, slightly above the earlier flash estimate of 0.8%. Despite the marginal upward revision, the figure remains well below the European Central Bank’s 2% target, reinforcing expectations that the ECB will maintain an accommodative stance for an extended period to support the euro area’s fragile recovery. Analysts noted that while headline inflation remains anchored at low levels, the recent monthly uptick could indicate the beginning of a modest reacceleration in price pressures if energy prices stabilize and services inflation remains sticky. However, with underlying price dynamics still soft and economic growth patchy, the overall inflation environment in France is expected to remain benign in the near term.