Declining energy prices contribute to reducing inflation in France

The final figures issued by the French Statistical Institute (INSI) on Friday showed a slowdown in the pace of rise in consumer prices in France during the month of February, compared to initial estimates.

The Consumer Price Index grew at an annual rate of 0.9%, while the previous forecast issued on February 27 indicated a growth of 1%.

It is noteworthy that prices rose by 0.3% in January, and 0.8% in December.

Energy prices fell by 2.9% after falling by 7.6%, mainly due to the impact of the electricity price base, which fell sharply in February 2025.

Prices of manufactured goods also decreased by 0.2% after falling by 1.2% in January. This is due to the difference in the timing of annual sales compared to the previous year, as the number of sales days was greater in January, while it was less in February.

In contrast, food price inflation accelerated from 1.9% to 2%. As for service prices, they witnessed a slight slowdown in their growth rate from 1.7% to 1.6%.