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France’s Inflation Holds Steady at 0.8% in March, Driven by Energy Price Declines

Provisional data from Insee highlights a significant year-on-year slowdown, with projections indicating sustained low inflation through 2026.

  • Inflation in France remained stable at 0.8% year-on-year in March 2025, matching February's rate, according to provisional Insee data.
  • Energy prices continued their sharp decline, falling by 6.2% year-on-year, following a 15% reduction in electricity tariffs implemented in February.
  • Food prices rose modestly by 0.6% year-on-year, with fresh products seeing a more pronounced increase of 3.8%.
  • Monthly inflation edged up by 0.2% in March, driven by higher prices for manufactured goods, clothing, and footwear.
  • The Banque de France projects inflation to remain below 2% for the next two years, with 2025 expected to see historically low levels of 1.3%.
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