French inflation falls back to ECB target in June as it slows for first time in 2026 By Reuters

French inflation fell back to the European Central Bank’s target in June as price pressures eased, according to preliminary INSEE data reported June 30. The harmonised inflation rate for France, the euro zone’s second-largest economy, dropped to 2.0% year-on-year from 2.8% in May, marking the first slowdown this year after five consecutive months of acceleration that began in January. The June figure also came in below a Reuters poll of 17 analysts, which projected an average of 2.3%. The deceleration was driven mainly by a 5% month-on-month decline in energy prices, especially petroleum products. Despite the fall, energy remained elevated at +11.2%, the article noted, following sharp increases tied to the Iran war.