French inflation dropped to 0.4% in January 2026, below forecasts, due to lower energy and goods prices.

French inflation fell to 0.4% in January 2026, below forecasts of 0.6%, driven by lower energy and manufactured goods prices, with services inflation also dipping slightly. The data, from Insee, adds pressure on the European Central Bank ahead of its policy meeting, where a rate hold is expected. The euro’s recent strength may further reduce import costs and suppress inflation. However, some economists warn inflation could rise in February due to a one-time drop in electricity prices in January 2025.