French inflation confirmed at nearly three-year high

October 2026, France’s annual inflation rate rose from 3.1% in September to 3.4%, matching the preliminary value and marking the highest level since December 2023. This acceleration was mainly driven by energy prices, with energy costs soaring 24.1% year-on-year, compared to a 21.3% increase in September. In particular, petroleum product prices jumped 38.5%, while natural gas prices surged 27.1%. Meanwhile, inflation in the services sector quickened from 2.4% to 2.6%, and the decline in manufactured goods prices narrowed from 0.3% to 0.2%. In contrast, food inflation slowed from 1.4% to 1.2%, and tobacco inflation remained steady at 3.3%. Core inflation climbed from 1.5% to 1.7%. Month-on-month, consumer prices increased by 0.4%, reversing September’s decline of 0.3%, mainly driven by rising service and energy costs. Additionally, the EU harmonised annual inflation rate rose from 3.4% to 3.7%, and the harmonised CPI increased by 0.4% month-on-month after falling by 0.3% in September.