France inflation hits 3% as rising costs erode purchasing power

Inflation in France reached 3% in September 2026, driven significantly by rising costs in energy and fresh produce. According to the Institut français d’économie (IFE), a family of four has lost an average of 1,200 euros in purchasing power since 2024, while a single person has lost approximately 600 euros.

While inflation had previously slowed to 0.3% in early 2026 due to seasonal decreases in manufactured goods, prices have since risen. Energy costs have increased by 21.2% over the past year, and fresh food prices have risen by 9.9%.

Economic analysis indicates that since 2017, prices have surged by 20%, outstripping wage growth. Although tax reductions were implemented during Emmanuel Macron's administration—such as the abolition of the housing tax (taxe d'habitation) and changes to wealth taxes—the acceleration of price increases since 2022 has significantly impacted the standard of living for many French households.