Inflation slows sharply in 2025, averaging 0.9%

Thursday 15 January 2026 - 11:30

By: Sahili Aya

Inflation slows sharply in 2025, averaging 0.9%

Inflation in France slowed significantly in 2025, settling at an average annual rate of 0.9%, according to data released by the national statistics office Insee. This marks a sharp decline compared with 2024, when inflation stood at 2%, and follows much higher levels recorded during the inflationary surge of 2022 and 2023.

The easing of inflation was largely driven by a pronounced fall in energy prices, which declined by an average of more than 5% over the year. Electricity prices dropped sharply, while gas prices moved in the opposite direction, rising at a faster pace. Despite this contrast, the overall energy component contributed strongly to the slowdown in consumer price growth.

Beyond energy, price increases moderated across most sectors. Food prices rose more slowly than in the previous year, service prices also decelerated, and tobacco inflation fell markedly. Prices of manufactured goods, meanwhile, recorded a slight decline over the year.

In December, consumer prices increased by 0.8% year on year, a marginal slowdown compared with November. On a monthly basis, prices edged up slightly, mainly due to seasonal increases in services such as transport, while energy prices continued to fall. The harmonized consumer price index, used for comparisons within the euro zone, showed a similar trend.