![\"\"](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/02\/773462.webp.jpeg\")
<\/p>\nEU finally reaches 2% target<\/p>\n
\n France performed well \u2026 but what does it mean for residents?
\n Have a nice day Photo \/ Shutterstock\n <\/p>\n
France\u2019s inflation rate at the start of 2026 is the lowest in the EU and among the lowest in Europe, according to new data from Eurostat, the statistical office of the European Union.<\/p>\n
Annual inflation for France in January 2026 stood at +0.4%, the second lowest in Europe behind Switzerland (+0.2%).\u00a0<\/p>\n
France\u2019s inflation rate was significantly lower than that of other major EU nations such as Italy (+1%), Germany (+2.1%) and Spain (+2.4%).\u00a0<\/p>\n
Annual inflation across the bloc reached 2% after falling in several countries, finally achieving a long-established EU target.\u00a0<\/p>\n
Of the EU\u2019s member states, 23 saw annual inflation decrease, with Sweden seeing stable figures and Bulgaria, Hungary, and Czechia the only EU nations to record increases.\u00a0<\/p>\n
Figures for the combined Eurozone countries were lower, with the currency bloc recording an annual inflation rate of +1.7%.\u00a0<\/p>\n
The full information can be seen in the map below\u00a0<\/p>\n
<\/p>\n
In contrast, the UK\u2019s annual inflation rate in January 2026 was +3.0%, and it reached +2.4% in the US.\u00a0<\/p>\n
Is this good news for French households?\u00a0<\/p>\n
France\u2019s position at the foot of the rankings looks like good news, but economists are cautious of the figures being oversimplified.\u00a0<\/p>\n
\u201cWhen inflation decreases, it doesn’t mean prices are falling,\u201d said economist St\u00e9phanie Villers to FranceInfo in 2025.\u00a0<\/p>\n
\u201cIt means that the rate of price increases is slowing down.\u201d\u00a0<\/p>\n
Despite hitting critically high inflation during the Covid-19 crisis (alongside many other countries), France did not see a period of \u2018negative\u2019 inflation and widespread price drops after this, Ms Villers said.\u00a0<\/p>\n
Low inflation may drive higher spending \u2013 lifting GDP growth \u2013 yet this outcome is not certain, as many households continue to cite inflation as a key concern. Meanwhile, an increasing number prefer to save rather than spend to guard against potential future economic crises.<\/p>\n
The EU attaining 2% annual inflation is also not expected to be sufficient for the European Central Bank to cut interest rates just yet. Authorities are expected to wait for this figure to remain steady for a number of months before doing so.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"EU finally reaches 2% target France performed well \u2026 but what does it mean for residents? Have a…\n","protected":false},"author":2,"featured_media":322179,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":{"0":"post-322178","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-ie","11":"tag-ireland"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/322178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=322178"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/322178\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/322179"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=322178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=322178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=322178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}