French inflation falls to 1.8% in June, dropping below 2% threshold for first time since March

The slowdown in consumer prices, driven by easing energy costs, marks a notable shift in the French price environment and may influence ECB policy expectations.

By Handelsavisen Newsroom · Automated 2026-06-30 08:16 UTC · 1 min read

Consumer price inflation in France decelerated to 1.8% year-on-year in June, down from 2.4% in May, according to data from the national statistics office, Insee.

The decline marks the first time the headline rate has fallen below the 2% threshold since March, signaling a cooling in the domestic price environment.

The moderation was primarily driven by a sharp slowdown in energy prices, particularly petroleum products, which offset broader pressures in other categories.

This development provides a reprieve for household purchasing power, which has been under strain from persistent cost-of-living increases earlier in the year.

The data adds to a broader trend of easing inflation across Europe, with the UK also reporting a decline to 2.8% in April.

For traders, the French print reinforces the narrative that energy-driven inflationary spikes are receding, potentially supporting expectations for a dovish stance from the European Central Bank in upcoming policy meetings.