(Sharecast News) - France's inflation rate slowed significantly in June despite fuel costs remaining much higher than they were last year, as energy price growth eased more than expected.
The annual change in the consumer price index was just 1.8% in June, according to preliminary estimates from the statistical agency Insee, down from 2.4% in May.

This was the lowest rate of inflation in three months and well below the 2.1% level expected by analysts.

Energy prices were still 11.2% higher than June 2025, though that was well below the 16.6% annual growth registered in May.

"This fall in inflation should be explained by the sharp slowdown in prices of energy, mainly in those of petroleum products," Insee said.

Meanwhile, services inflation eased to 1.8% from 2.1% and food inflation slowed to 0.9% from 1.1%, while the fall in prices of manufactured products accelerated to -0.9% from 0.6%.

The harmonised index of consumer prices - a measure of inflation that is comparable across eurozone countries by assessing the prices paid by households for a representative basket of consumer goods and services - fell to 2.0% from 2.8%, falling in line with the European Central Bank's target rate.

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