Consumer price inflation in France decelerated sharply to 1.8% year-on-year in June, down from 2.4% in May, according to a preliminary estimate from the national statistics office, Insee.
The decline marks the first time the headline rate has fallen below the 2% threshold in recent months, signaling a meaningful shift in the domestic price environment.
This development aligns with broader eurozone trends, as Germany also reported a cooling of inflation to 2.
The slowdown was primarily driven by a significant drop in energy prices, which offset persistent pressures in other categories.
This development aligns with broader eurozone trends, as Germany also reported a cooling of inflation to 2.3% in June, down from 2.6% previously.
The synchronized easing across the bloc’s two largest economies suggests that the disinflationary cycle is gaining momentum, potentially influenced by lower global oil prices and the lingering effects of widespread discounting.
The French government welcomed the data, viewing it as a positive sign for household purchasing power and economic stability.