French inflation dipped below 1% for the first time in four years in February, according to preliminary data released by statistics agency INSEE on Friday.

The harmonized inflation rate, which allows for comparison with other eurozone countries, stood at 0.9% year-on-year in February, marking the first time it has dropped below 1% since February 2021.

Economists surveyed by Reuters had, on average, anticipated a 1.2% rise in the harmonized consumer price index, with estimates ranging from 0.9% to 1.7%. This marks a sharp slowdown from January's 1.8% increase.

The decline was largely driven by a significant drop in energy prices, particularly electricity, which had seen a substantial rise in February 2024, INSEE noted.

While price increases for services, manufactured goods, and tobacco also slowed, food prices saw a slight acceleration.

On a month-to-month basis, consumer prices remained stable in February after a 0.2% rise in January. A rebound in manufactured goods prices following winter sales was offset by a 15% drop in regulated electricity tariffs.

Food prices edged down slightly on the month, while service prices experienced a modest increase, INSEE reported. Photo by Avij (talk · contribs), Wikimedia commons.