France’s EU-harmonized inflation rate rose to 2.7% year on year in August 2026, up from 2.4% in July, according to a preliminary estimate. It was the highest since May, driven by a renewed increase in energy prices amid continued fighting in the Middle East. The stronger-than-expected reading added to expectations that the ECB could raise interest rates in September, with markets fully pricing a 25-basis-point increase that would lift the deposit rate to 2.5%. Investors also see another hike by spring 2027.