French inflation reaches 2.4% in August as July household spending rises 0.5%

Energy costs push August inflation to 2.4%

Provisional figures from Insee on 28 August 2026 indicate French annual consumer price inflation rose to 2.4% in August, up from 2.1% in July. The acceleration was driven primarily by energy prices, which rose 16.7% year-on-year, led by increases in petroleum products. In contrast, in August 2025 prior to the outbreak of the war in the Middle East, annual inflation stood at 0.9% while energy prices fell by 6.2%. The Harmonised Index of Consumer Prices (HICP), used for euro area comparisons, increased to 2.7% year-on-year in August after 2.4% in July. On a monthly basis, consumer prices grew by 0.7% following a 0.6% gain in July, while the harmonised index climbed 0.8% month-on-month.

Component breakdown of price movements

Across product categories, price dynamics varied in August. Food prices rose 1.1% year-on-year after 1.0% in July, driven by fresh food prices, which climbed 5.8% compared to 3.8% the previous month. The annual decline in manufactured goods prices moderated to 0.4%, compared with a 0.7% contraction in July. Services inflation slowed to 2.0% year-on-year from 2.2% in July, while tobacco prices maintained an annual increase of 3.3%, matching July. Month-on-month increases reflected seasonal price adjustments in manufactured items, particularly clothing and footwear, following the conclusion of July sales. On a monthly basis, services and tobacco prices were stable, while energy and fresh food prices posted gains.

Household consumption expands 0.5% in July

French household expenditure on goods increased by 0.5% month-on-month in July 2026, following a revised 0.6% rise in June. Over twelve months, household consumption spending grew by 1.4%. The monthly expansion was supported by increased purchases of new cars, fuel, and electricity, despite cooling slightly from the previous month. The statistical agency detailed the breakdown across categories.

Consumption of manufactured goods is rising again (+0.5% after stability), energy consumption is increasing again (+0.8% after +1.5%), as is food consumption (+0.2% after +0.7%).

Weather conditions and sector dynamics in consumption

Specific consumer segments showed distinct responses to economic and environmental conditions in July. Energy consumption rose 0.8%, propelled by higher fuel spending as diesel prices rebounded above 2 euros per litre on international tensions. High summer temperatures also influenced electricity use and grocery choices.

July 2026 was the hottest month ever recorded in France across all months combined.

Manufactured goods consumption rose 0.5%, supported by durable goods, while clothing and textile spending fell 0.2% after dropping 1.2% in June. Food consumption grew 0.2%, anchored by dairy products and beverages during the extreme heat.