French inflation accelerates to 2.1% in July, driven by services and fresh produce

Rising costs for energy and accommodation push the annual rate above the ECB's 2% target, complicating the monetary outlook for the eurozone's largest economy.

By Handelsavisen Newsroom · Automated 2026-07-31 09:57 UTC · 1 min read

Consumer prices in France rose 2.1% year-on-year in July, accelerating from the 1.8% print recorded in June.

The uptick was primarily driven by higher costs in the services sector, alongside persistent pressure from energy, accommodation, and fresh produce prices.

1% places France back above the European Central Bank's 2% inflation target.

This marks a renewed climb in inflationary pressure for the eurozone's largest economy, reversing the slight cooling seen in the previous month.

The acceleration to 2.1% places France back above the European Central Bank's 2% inflation target.

While the headline figure remains moderate compared to the peaks seen in previous years, the broadening of price increases across essential categories such as food and housing suggests underlying inflationary stickiness.

The rise in service prices, which are often more sensitive to wage dynamics, adds complexity to the disinflation narrative that had gained traction earlier in the year.