France continues to have one of the lowest levels of inflation across Europe towards the end of the year, nearly 8% lower than in EU counterpart Romania.
Annual inflation in October 2025 sat at 0.8%, the third-lowest in Europe behind Cyprus and Switzerland.
Significantly lower than the EU (2.5%) and Eurozone (2.1%) averages, it provides a further economic boost for France alongside surprisingly strong GDP growth figures at the end of October.
It means France is set to be only one of a handful of countries set to hit the European Central Bank’s target of keeping inflation under 2% in 2025.
In comparison, inflation in the UK in October was 3.6% – higher than all the major EU economies.
US figures for October are not available due to the government shutdown – and reportedly will not be made available – but in September 2025 stood at 3.1%
France’s low inflation levels are driven by falling energy costs and a reduction in pace for food price increases that hit several markets earlier in the year, according to national statistics body Insee.
Services and tobacco are seeing small and continual prices increase, but outside of these areas steady prices elsewhere have kept inflation manageable.
It is a positive sign that may help calm markets and reassure investors amid the volatile draft 2026 budget, which if not passed before the end of the year could cause the loss of billions of euros.
The European Central Bank however is warning that France may see inflation slowly drift upwards over the coming months.
