French annual inflation accelerated to 3.4 percent in September, the fastest pace in over two years, according to data released by statistics agency Insee.
The acceleration was driven by surging oil and natural gas costs. Energy prices rose sharply month-over-month while goods inflation continued to cool, indicating the inflation dynamic is now dominated by commodity markets rather than broad-based demand.
The 3.4 percent rate exceeds the 2.8 percent harmonized inflation rate recorded in May, which had been the previous high since February 2024. May inflation had risen from 2.5 percent in April, also driven by energy prices.
The sustained rise in energy costs maintains pressure on the European Central Bank, which faces expectations to continue raising interest rates to combat price growth across the euro area.
