The annual inflation rate in France slowed to 1.8% in June 2026 from 2024-highs of 2.4% in May, and below market expectations of 2.1%, preliminary estimates showed. The decline in inflation was primarily driven by a sharp slowdown in energy price growth, particularly for petroleum products, although energy prices remained significantly higher than a year earlier (11.2% vs 16.6% in May). Services (1.8% vs 2.1%) and food (0.9% vs 1.1%) inflation also eased while prices for manufactured goods declined at a faster pace (-0.9% vs -0.6%), partly due to calendar effects, as the June data collection period included more days of seasonal sales than in the previous year. In contrast, tobacco prices increased at a slightly faster pace (3.3% vs 3.2%)