\n Published on
\n 06\/01\/2026 – 10:05 GMT+1\n <\/p>\n
Inflation in France cooled in December \u2014 a reading that comes after the European Central Bank\u2019s decision to hold interest rates at the end of last year.<\/p>\n
Consumer prices (CPI) rose by 0.8% year-on-year in December, following a reading of 0.9% in November, according to statistics body INSEE. The Harmonised Index of Consumer Prices or HICP, which allows for comparison between EU countries, came to 0.7%. That followed a reading of 0.8% in November.<\/p>\n
\u201cThe fall in inflation should be attributed to a more pronounced decrease in energy prices, mainly those of petroleum products,\u201d said INSEE.<\/p>\n
Food prices, on the other hand, rose at a faster pace, while services and tobacco costs increased at a steady rate.<\/p>\n
The prices of manufactured products fell in December, although they did so at a marginally slower pace.<\/p>\n
The ECB left its key deposit rate unchanged at 2% in December against a backdrop of easing inflation and robust growth in the eurozone.<\/p>\n
Among rate-setting committee members, there is, however, a lack of consensus over the trajectory of price pressures. Executive board member Isabel Schnabel warned in early December against stronger-than-expected services inflation and wage growth. She therefore added that she was \u201ccomfortable\u201d with investors betting that the next move would be a hike.<\/p>\n
France’s Fran\u00e7ois Villeroy de Galhau, another committee member, diverged from such rhetoric, warning that inflation may fall too far below the 2% target.<\/p>\n
\u201cThe downside risks on the inflation outlook remain at least as significant as the upside risks, and we would not tolerate a lasting undershooting of our inflation target,\u201d he said.<\/p>\n
Eurozone inflation was recorded at 2.1% in November, and it has been hovering close to the ECB\u2019s 2% target since early 2025.<\/p>\n
Eurosystem staff projections show headline inflation averaging 1.9% in 2026, 1.8% in 2027, and 2.0% in 2028.<\/p>\n
Fresh inflation figures for the eurozone are set to be published on Wednesday.<\/p>\n","protected":false},"excerpt":{"rendered":"Published on 06\/01\/2026 – 10:05 GMT+1 Inflation in France cooled in December \u2014 a reading that comes after…\n","protected":false},"author":2,"featured_media":224266,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[4391,114,11156,22419,9575,184,2226,85,932,46],"class_list":["post-224265","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-budget","tag-business","tag-christine-lagarde","tag-ecb","tag-economic-growth","tag-economy","tag-france","tag-il","tag-inflation","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/224265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=224265"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/224265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/224266"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=224265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=224265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=224265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}