
French Inflation Eases Slightly in December, Supporting ECB’s Cautious Outlook
•By ADMIN
French annual inflation cooled modestly in December 2025, with consumer prices rising 0.7% year‑on‑year, down from 0.8% in November, according to preliminary figures published by France’s national statistics agency INSEE. This softer inflation print was slightly below the average forecast of economists and suggests subdued price pressures in the eurozone’s second‑largest economy.
The European Central Bank (ECB) has maintained its key deposit rate at 2% since June, and officials view the deceleration in inflation as a sign that monetary policy is having its intended effect. ECB President Christine Lagarde reiterated that policy remains appropriate and has raised growth forecasts for the wider euro area, while emphasizing that inflation — with the ECB’s target at 2% — continues to be monitored closely.
The December inflation data provides reassurance that price increases are moderating, though inflation remains below the ECB’s target and could influence future decisions on rate adjustments. Additional eurozone inflation data, including figures from Germany and broader EU harmonized statistics, is expected to be released later this week.
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