French inflation holds steady at 1.0% in July

France's annual inflation rate held steady at 1.0% in July, matching preliminary estimates and remaining unchanged from the previous month. The harmonized inflation rate, used for comparison across the Eurozone, was 0.9% year-on-year. On a monthly basis, consumer prices increased by 0.2% in July, following a 0.4% rise in June. This monthly increase was primarily influenced by higher service prices, particularly in transport and accommodation, which rose 1.3% and 11.7% respectively. Energy prices saw a modest monthly increase of 0.9%.

Year-on-year, the acceleration in service prices to 2.5% and a slight uptick in food prices to 1.6% were counterbalanced by a more significant drop in energy costs, which fell 7.2% compared to a 6.7% decrease in June. Prices for manufactured goods remained stable year-on-year.

Separately, preliminary data indicated that French consumer prices rose 2.4% year-on-year in July, surpassing the 2.1% expected by analysts.