Preliminary data shows French consumer prices rose faster than expected in July, driven by services and energy, adding pressure on the ECB.
French preliminary inflation accelerated to 2.1% year-over-year in July, above the 1.8% forecast and June’s 1.8% print. The harmonized index (HICP) also climbed to 2.4%, surpassing expectations of 2.1% and June’s 2.0% reading.
The rise was led by a rebound in service prices, particularly accommodation and communication, alongside higher energy costs, including gas and petroleum. Monthly inflation surged to 0.6% from June’s -0.3%, signaling persistent price pressures across the eurozone.
Energy inflation rose to 12.4% from 11.0% in June, while services inflation increased to 2.3% from 1.9%. Food prices remained stable at 0.9%. The data reinforces expectations for further ECB rate hikes in September.