In September 2025, the consumer price index (CPI) in France declined by 1.0 percent month-over-month due mainly to a sharp seasonal drop in services, particularly accommodation and transport, as summer demand tapered. However, on an annual basis, inflation edged up to 1.2 percent from 0.9 percent in August, suggesting persistent underlying price pressures. Services were the main driver of this rise, with costs increasing by 2.4 percent year-over-year, supported by higher health, cultural, and communication service prices.

Energy prices remained a moderating force, though the decline was less severe (minus 4.4 percent after minus 6.2 percent), as fuel costs rebounded slightly. Food inflation inched up to 1.7 percent, propelled by meat, cereals, and beverages, while fresh fruit prices slowed. Manufactured goods continued to exert downward pressure on inflation, falling by 0.4 percent over the year, largely due to cheaper household appliances and furniture.

In essence, these updates indicate that while headline inflation remains modest, core inflation at 1.3 percent suggests stable domestic price dynamics. The easing of energy deflation and resilience in service costs hint at a gradual re-balancing of consumer prices as France transitions from post-Olympic and seasonal distortions toward steadier inflationary conditions, leaving the RPI and RPI-P at minus 7 and minus 4, respectively. This means that economic activities continue to perform within the expectations of the French economy.

CPI expected down 1.0 percent on the month in September and up 1.2 percent on year, unrevised from the flash.

The consumer price index (CPI) is a measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly and annual changes in the CPI represent the main rates of inflation. The national CPI is released alongside the HICP, Eurostat's harmonized measure of consumer prices. A flash estimate was released for the first time in January 2016 and is now published towards the end of each reference month.

The consumer price index is the most widely followed indicator of inflation. An investor who understands how inflation influences the markets will benefit over those investors that do not understand the impact. In countries where monetary policy decisions rest on the central bank's inflation target, the rate of inflation directly affects all interest rates charged to business and the consumer. As a member of the European Monetary Union, France's interest rates are set by the European Central Bank.

France like other EMU countries has both a national CPI and a harmonized index of consumer prices (HICP). The HICP is calculated to give a comparable inflation measure for the EMU. Components and weights within the national CPI vary from other countries, reflecting national idiosyncrasies.

Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how indicators such as the CPI influence the markets - and your investments. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion.

By tracking inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform. Over the long run, the bond market will rally (fall) when increases in the CPI are small (large). The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.