Big drop in telephone fees but rises for food and services: France’s June 2025 inflation stats

France’s year-on-year inflation increased again in June, reaching 1%, data from the French statistics bureau Insee shows, underscoring persistent pressure on household budgets and a sluggish economic outlook.

Prices in the service sector led the annual rise, with prices up 2.4% across a broad swathe of the economy, says an Insee report published on June 11,

The cost of transport (+2.9%) and hospitality (+5.5%) show marked rises. 

However, energy prices were down 6.7% over the year, but the decline slowed compared to May (–8.0%). 

French GDP is now expected to rise by just 0.6% in 2025, down from a previous estimate of 0.7% in March and 0.9% earlier this year.

The revised forecast brings the French central bank in line with forecasts of the Organisation for Economic Co-operation and Development and the International Monetary Fund, and below the government’s target of 0.7%.