French Inflation Slows to 0.8% in December: Energy Prices Lead the Decline

French Inflation Cools to 0.8% in December 2025

Inflation in France eased to 0.8% year-over-year in December 2025, according to provisional data from INSEE. This marks a slight decline from the 0.9% recorded in November, signaling a continuing slowdown in consumer price growth as energy costs plummet.

While this is good news for consumers battling high living costs, the picture remains mixed across different sectors of the economy.

Energy Prices Drive the Decline

The sharp drop in energy prices was the main factor cooling inflation in December. Energy costs fell 6.8% over the year, deepening the decline seen in November (-4.6%). This downturn is largely linked to lower oil and gas prices on international markets — a relief for households and businesses grappling with high utility bills throughout 2024.

However, experts caution that these declines could be temporary, depending on global supply conditions and geopolitical tensions that still affect energy markets.

Food Prices Rise Again

Although energy brought relief, food prices moved in the opposite direction. The cost of food products rose 1.7% year-on-year, following 1.4% in November. Fresh produce, dairy products, and meat were key contributors to this rise.

For many households, this increase continues to strain purchasing power, particularly amid other rising costs such as rents and services.

READ ALSO: Electricity Subscription Prices in France to Drop by 5% from February — A First Step Toward Electrification

Contrasting Trends Across Sectors

Other consumer price categories showed mixed trends in December:

Manufactured goods: Prices dipped slightly by 0.4%, compared with -0.6% in November.
Services: Prices remained steady at 2.2% year-on-year, reflecting stable demand across sectors like housing, leisure, and transport.
Tobacco: Continued its upward trajectory, increasing by 4.1% on the year.

On a monthly basis, consumer prices rose 0.1% in December, after a 0.2% fall in November. This rebound is mainly due to seasonal effects, particularly the rise in transport prices and end-of-year holiday spending.

How France Compares in the Eurozone

When measured using the Harmonised Index of Consumer Prices (HICP) — which allows direct comparison across EU countries — inflation in France stood at 0.7% in December, down from 0.8% in November.

This figure remains below the eurozone average, suggesting that France’s inflation slowdown is slightly more pronounced than in neighboring economies such as Germany or Spain.

READ ALSO: French Property Market Rebounds in 2025 – But Will Rising Rates Stall the Recovery in 2026?

What It Means for Consumers and the Economy

The continued cooling of inflation gives consumers some breathing room, but the benefits are not evenly felt. While lower fuel and electricity bills lighten the monthly burden, rising food costs continue to eat into disposable income.

For policymakers and the European Central Bank (ECB), this trend could support discussions around interest rate adjustments in 2026, particularly if inflation remains well below the 2% target.

Key Takeaways

Overall inflation: 0.8% in December 2025 (down from 0.9%).
Energy prices: -6.8%, the main driver of the slowdown.
Food prices: +1.7%, continuing to climb.
HICP (Eurozone measure): 0.7%, highlighting a relatively stable price environment.
Next update: INSEE will release final figures on January 15, 2026.