France's annual inflation rate held steady at 1% in July 2025, unchanged from June and in line with market expectations, according to preliminary estimates. Energy prices fell more sharply (-7.2% vs. -6.7% in June), largely due to a base effect from a significant surge in gas prices in July 2024. Prices for manufactured goods continued to decline at the same pace as in June (-0.2%). In contrast, food prices rose slightly more (1.6% vs. 1.4%), as did service prices (2.5% vs. 2.4%). On a monthly basis, consumer prices increased by 0.2% in July, following a 0.4% gain in June and exceeding forecasts of a 0.1% rise. The main upward pressure came from seasonal increases in service costs, particularly in transportation and accommodation, as well as, to a lesser extent, higher energy prices. Meanwhile, manufactured goods prices declined due to summer sales. Using the EU-harmonised index, the annual inflation rate remained at 0.9%, while the monthly rate edged down to 0.3%.