France's July inflation climbs 2.4% year-on-year

France's annual inflation rate increased to 2.4% in July, according to official data released by the national statistics office INSEE on Tuesday.

The rise, which follows a 2.3% increase in June, marks a modest acceleration in price growth. Economists surveyed by Reuters had forecast a 2.3% year-on-year increase for July, indicating the inflation reading slightly exceeded market expectations.

On a monthly basis, consumer prices rose 0.2% in July, unchanged from the previous month. The core inflation rate, which excludes volatile energy and food prices, also edged higher to 2.7% from 2.6% in June.

The latest data suggests inflationary pressures in France remain elevated, though the pace of increase has slowed compared to 2023 peaks. The European Central Bank has signaled caution in monetary policy amid persistent price growth, with inflation still above its 2% target.

Energy prices contributed to the annual inflation rate, rising 1.4% year-on-year, while food prices increased 3.4%. Services inflation, a key component of the core measure, climbed to 3.1% from 3.0% in June.

The inflation figures come as the French government continues to monitor price trends closely, with household purchasing power remaining a central policy focus amid broader eurozone economic uncertainty.