French Inflation Holds at 1.3% in December, Below Predictions

Energy prices saw a slight rebound, while declines in manufactured goods and stable food prices kept inflation steady, according to INSEE's provisional data.

France's inflation rate remained at 1.3% in December on an annual basis, matching November's figure, according to INSEE's initial estimates.
The harmonized consumer price index, used for European comparisons, rose slightly to 1.8% year-over-year, up from 1.7% in November.
Energy prices increased by 1.2% in December, while manufactured goods prices declined by 0.4% and food prices remained flat.
Services, which make up over half of household consumption, saw a 2.3% annual price increase, consistent with November's data.
INSEE forecasts inflation could decline further to 1% by mid-2025, with the French economy facing a slow start to the year as the government implements a €50 billion budget effort.