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The annual inflation rate in France eased to 1% in October 2025, down from 1.2% in September and below expectations of 1.1%, according to preliminary estimates. The slowdown was mainly driven by a sharper decline in energy prices (-5.6% vs -4.4% in September), reflecting lower gas and petroleum product costs, along with a moderation in food inflation (1.3% vs 1.7%). The cost of services (+2.4%) and tobacco prices (+4.1%) rose at the same pace as in September, while manufactured goods prices fell slightly faster (-0.5% vs -0.4%). On a monthly basis, the CPI edged up 0.1%, following a 1.0% drop in September, in line with forecasts, largely reflecting higher prices for services and manufactured goods. Based on the EU-harmonised index, annual inflation eased to 0.9%, below both 1.1% in September and market expectations of 1%, while the index rose 0.1% month-on-month after a 1.1% decline in the previous period, also matching forecasts.