Inflation jumps 1% in February, household consumption also up

Consumer prices in France increased by 1.0% in February year-on-year, a jump in inflation, which had fallen to 0.3% in January, INSEE indicated on Friday in its first estimate.

“This increase in inflation could be explained in part by a less pronounced drop in energy prices”, while “the prices of manufactured products would fall less than in January” and “food prices would accelerate over a year”, detailed the national statistical institute.

Concerning energy, INSEE notes the impact of electricity prices, “which had fallen sharply in February 2025”. Over one month, the first estimate of the increase in consumer prices is 0.7% in February, after a drop of 0.3% in January.

“This rebound in prices could be explained by the increase in the prices of services, driven by the seasonal rebound in transport services, and by the increase, also seasonal, in the prices of manufactured products, due to the end of sales in clothing and shoes,” INSEE underlined.

Household consumption increases

Over one year, the harmonized consumer price index (HICP, which allows comparisons between the different inflation rates in the euro zone) increased by 1.1% over one year in February, after 0.4% in January. The HICP is the benchmark indicator of the European Central Bank, which has an inflation target of 2%. Inflation in France, which rose to more than 6% at the start of 2023, after a surge in 2021 and 2022 seen almost everywhere in the world, has declined significantly in France since then.

Among the other figures announced by INSEE this Friday, French household consumption expenditure on goods rebounded in January, increasing by 0.5% after having fallen by the same amount in December. “Consumption of manufactured goods rebounds (+ 1.0% after -0.8%), as does food consumption (+ 0.6% after -0.5%),” indicated the national statistical institute.

Bull market you PIB

France’s gross domestic product (GDP) increased by 0.2% in the fourth quarter of 2025, after 0.5% in the third, and by 0.9% over the year, INSEE confirmed on Friday in its detailed results. These latest results also show a further decline in the household savings rate, among the highest in Europe, which fell below 18%, to 17.9%. On average it rose to 18.2% in 2024 and 18.3% in 2025.

As for salaried employment, it remained almost stable (-0.1%) in the fourth quarter of 2025, with employment in the public sector falling a little more sharply (-0.3%) than in the private sector (-0.1%), according to figures released by INSEE on Friday. Over one year, salaried employment is 0.2% below its level one year previously (i.e. -45,900 jobs), indicates the National Institute of Statistics and Economic Studies.