Inflation Is Slowing in France — So Why Does Everyday Life Still Feel So Expensive?

Inflation is slowing in France, but life still feels expensive. Here’s why food, services, wages and energy bills still squeeze budgets in 2026.

Many people across France have noticed something that doesn’t seem to make sense: the headlines say inflation is slowing, yet food shopping still feels painful, bills remain high, and families continue cutting back.

So what’s really going on?

In late 2025, official figures showed French inflation easing again — with December inflation around 0.8% year-on-year, driven largely by falling energy prices. But a lower inflation rate doesn’t automatically mean life gets cheaper, and that’s the key misunderstanding.

1) Inflation Slowing Doesn’t Mean Prices Are Falling

First, the most important point:

Inflation is the speed at which prices rise — not whether prices are high.

So when inflation slows, prices are still going up… just more slowly than before.

For households, that means:

The supermarket is still expensive
Energy bills can still be stressful
Rent, insurance and services rarely fall

Many families are still financially recovering from the major price shocks of the last few years — especially 2022–2024 — when food and energy costs rose sharply.

2) Energy Prices Can Fall, But Households Still Struggle

Part of the recent improvement in inflation is linked to energy prices (electricity, gas, fuel).

But this creates a disconnect:

Even if prices drop slightly, bills remain high compared to “normal” years
Many homes (especially older rural homes) are hard to heat efficiently
Electric heating can remain expensive even if the inflation rate improves

This is why you can read that energy inflation is down — yet still see reports that a large share of households struggle to pay energy bills.

It’s not a contradiction. It’s simply two different perspectives:

Inflation data measures price movement
Household reality measures affordability and living pressure

3) Food Prices Are the “Inflation You Feel”

In most households, food is the expense people notice most because it’s frequent and visible.

Even small increases hit hard because families are shopping weekly (sometimes daily), and it’s easy to compare:

What cost €35 last year now costs €45
Own-brand items creep upward
Fresh produce varies wildly depending on season and supply

There’s also a psychological effect: if prices went up significantly in previous years, people remember the “before” price — and it continues to feel expensive long after inflation slows.

4) Services Often Keep Rising (Even When Inflation Slows)

Inflation figures include many categories. Some fall. Some rise.

One category that matters a lot: services.

This includes things like:

Insurance
Banking fees
Repairs and maintenance
Subscriptions
Transport services
Restaurants/cafés

Services costs are often sticky — they don’t drop quickly, even when global inflation improves, because labour costs and operating expenses remain high.

5) Wages Haven’t Fully Caught Up for Many People

Even if inflation slows, life still feels expensive if income doesn’t rise in parallel.

In France, many households have been squeezed because:

Wage increases are uneven across sectors
Fixed incomes (pensions, some benefits) don’t always adjust fast enough
Middle-income families often don’t qualify for support, but still feel rising costs

This is why cost-of-living pressure is felt strongly even in periods of “better” inflation.

6) The “Everyday Cost” Items That Quietly Add Up

Even when inflation looks low overall, households still feel the rising cost of:

Car repairs and parts
Winter heating costs
Health expenses not fully reimbursed
School and childcare costs
Fuel + tolls

These are the hidden pressures behind the feeling that “everything is more expensive”.

So What Should Households Do in 2026?

No one can control national inflation — but households can adjust strategy.

In 2026, the most effective approach is usually:

Reduce fixed monthly costs (insurance, subscriptions, banking fees)
Heat smarter (fewer rooms, draft reduction, efficient routines)
Shop seasonally and plan meals (one of the quickest savings wins)
Build a small buffer (even €30–€50/month helps with shocks)

If you’re tracking the cost of living and trying to plan realistically, this cornerstone guide may help:

Cost of Living in France: A Realistic Breakdown for Families on a Budget

Bottom Line

Inflation slowing is good news — but it doesn’t “undo” the last few years of higher prices.

That’s why everyday life can still feel expensive in France even when official inflation rates fall: prices are still high, costs are sticky, and household income hasn’t fully caught up.

In practical terms, the winning strategy for 2026 won’t be waiting for prices to return to the past — it will be adapting intelligently, protecting your budget, and making your household costs more resilient.