Stable Inflation Rates Continue in France

France's inflation rate remained steady at 2.4% year-over-year in July, matching market forecasts and mirroring the previous month's figure. According to data from the national statistics office, the harmonised index of consumer prices (HICP) saw a slight deceleration on a monthly basis, increasing by just 0.1%. This stable headline figure suggests that recent service costs have plateaued.

Core inflation, which excludes volatile food and energy prices, also showed signs of moderation, though the statistics office did not provide a detailed breakdown in the initial release. The French government's caps on electricity prices and fuel discounts are believed to have helped keep inflation lower than it would otherwise be.

France's inflation performance is broadly in line with the eurozone average, which stood at 2.5% in July. Economists expect France's inflation to remain around the 2% mark through the end of the year, barring any major shocks to energy prices or supply chains.