France Inflation Rebounds to 1.0% in February, Insee’s First Estimate Shows

Overview

• Consumer prices rose 0.7% on the month, linked to a seasonal rebound in transport services and post-sale increases in clothing and shoes.
• The harmonized index (HICP) reached 1.1% year over year in February, remaining below the ECB’s 2% target.
• Insee cites a smaller decline in energy costs, reduced discounting in manufactured goods, and faster food inflation as key drivers, with electricity comparisons to February 2025 influencing the annual rate.
• Household spending on goods recovered in January, up 0.5% year over year as purchases of manufactured goods increased 1.0% and food 0.6%.
• Tobacco purchases fell and energy consumption declined 0.8%—including a 7.3% drop in refined products such as fuels—while an ING economist describes pressures as moderate but warns energy base effects could push inflation higher in coming months.