France July Inflation Rises to 2.1 Percent on Energy Costs

Annual headline inflation in France rose to 2.1 percent in July, increasing from 1.8 percent in June. The acceleration was primarily driven by energy price inflation, which reached 12.6 percent following a sharp rise in gas prices to 17.7 percent.

Core annual inflation also climbed to 1.3 percent in July, up from 1.0 percent in June. This increase was largely attributed to sticky services inflation, which rose from 1.9 percent to 2.2 percent over the same period. Food price inflation experienced a minor increase to 1.0 percent.

The Institut National de la Statistique et des Études Économiques reported these rising price pressures, particularly within the services sector, which are expected to keep the European Central Bank watchful regarding future monetary policy trends following the summer period.