France’s annual inflation rate eased to 0.9% in August 2025, below market expectations of holding steady at July’s 1%, according to a preliminary estimate. The slowdown was mainly driven by softer services inflation (2.1% vs 2.5% in July), particularly in transport, while manufactured goods prices fell slightly faster (-0.3% vs -0.2%). Meanwhile, the decline in energy costs moderated (-6.2% vs -7.2%), food inflation remained steady (1.6%), and tobacco prices were unchanged (4%). On a monthly basis, consumer prices rose 0.4%, accelerating from a 0.2% gain in July, supported by a seasonal rebound in clothing prices after summer sales, alongside smaller increases in food and services, while energy slipped slightly. The annual harmonized inflation rate slowed to 0.8% from 0.9%, and the monthly HICP rose 0.5% after 0.3% previously.