France’s annual inflation rate accelerated to 1% in February 2026, up from 0.3% in January which was the lowest reading since December 2020, and above market expectations of 0.8%, according to preliminary estimates. The rebound was partly driven by a more moderate decline in energy prices (-3% compared with -7.6% in January), reflecting a base effect linked to electricity prices, which had fallen sharply in February 2025. Meanwhile, prices of manufactured goods declined at a slower pace (-0.3% versus -1.2%). At the same time, food price inflation accelerated to 2.1% (from 1.9%), while services inflation edged up to 1.8% (from 1.7%) and tobacco prices rose at a faster annual rate of 3.0% (from 2.7%). Compared to the previous month, the CPI went up 0.7%, after a 0.3% gain in January. Considering the EU-harmonised CPI, the annual inflation went up to 1.1% from 0.4%, much higher than forecasts of 0.7%.