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France’s annual inflation rate rose to 1.7% in January 2025, surpassing initial estimates of 1.4% and up from 1.3% in December. This marks the highest level since last August, driven by faster price growth in services (2.5% vs. 2.2% in December) and energy (2.7% vs. 1.2%). In addition, manufactured goods costs rebounded (0.2% vs. -0.4%), mainly due to a sharp rise in clothing and footwear prices. Meanwhile, cost of food remained stable (0.1% vs. 0%), while tobacco inflation slowed (6% vs. 8.7%). On a monthly basis, the CPI rose 0.2%, maintaining the same pace as the previous month and revising higher from an initial estimate of a 0.1% decline. The increase was driven by higher prices in services, particularly healthcare and social protection, as well as energy. The EU-harmonized CPI rose 1.8% year-on-year, unchanged from December, and fell 0.2% month-on-month, both in line with preliminary estimates.