The annual inflation rate in France surprisingly accelerated to 2.4% in August 2026 from 2.1% in July, according to preliminary estimates, exceeding market expectations that it would remain unchanged. The pickup was mainly driven by a sharp acceleration in energy inflation, which rose to 16.7% from 12.6%, particularly for petroleum products. Meanwhile, the decline in manufactured goods prices eased to 0.4% from 0.7%, while food inflation edged up to 1.1% from 1.0%, led by faster increases in fresh food prices. In contrast, services inflation slowed to 2.0% from 2.2%, while tobacco inflation remained unchanged at 3.3%. On a monthly basis, consumer prices rose 0.7% after increasing 0.6% in July, as manufactured goods prices rebounded seasonally following summer sales, while energy and food prices also increased. The EU-harmonised annual inflation rate accelerated to 2.7% from 2.4%, while monthly HICP inflation rose to 0.8% from 0.6%.