France experienced a decrease in its annual inflation rate to 0.7% in May 2025, aligning with preliminary estimates and down from 0.8% recorded in both March and April. This represents the lowest inflation level since February 2021. The decline was primarily due to a reduction in inflation within the services sector, with rates dropping to 2.1% from April’s 2.4%, alongside a more significant decrease in energy prices, which fell by 8% compared to a 7.8% drop previously. Conversely, food prices experienced a marginal increase, rising to 1.3% from 1.2%. The prices for manufactured goods fell slightly by 0.2%, and tobacco prices remained stable at a growth rate of 4.1% from April. On a month-to-month basis, the Consumer Price Index (CPI) fell by 0.1%, marking its first decline since November of the previous year, following an increase of 0.6% in April. This was mainly attributed to the reduction in energy and services prices. Simultaneously, the EU’s annual harmonized inflation rate also decreased, reaching 0.6% from 0.9%, the lowest since December 2020, while the monthly harmonized CPI decreased by 0.2%, reversing its 0.7% increase seen in April.
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