France inflation steady at 1.7% as energy lifts March CPI

France's consumer price index was unchanged at 1.7% year-over-year in March. Headline CPI rose 1.0% month-over-month as energy prices increased 8.9% and petroleum products jumped 17.1%. The monthly rise in energy was the main contributor to the higher headline reading.

Core inflation, which excludes energy and unprocessed food, rose to 1.1% year-over-year in March from 0.9% in February. Services inflation edged up to 1.7% year-over-year from 1.6% in February. Core services rose 0.5% month-over-month, bringing its year-over-year rate to 1.9%.

The monthly increase in headline CPI was concentrated in energy. European gas and fuel markets tightened amid heightened tensions tied to the US-Iran conflict, pushing gas and petroleum prices higher during March. Petroleum products recorded the largest monthly gain, up 17.1%, reflecting higher wholesale and retail fuel costs.

Food prices were mixed: core food fell 0.1% month-over-month but remained up 0.3% year-over-year.

Economists expect further upward pressure on inflation in April if energy markets remain volatile. European policymakers, including the European Central Bank, are monitoring whether recent energy price spikes feed into broader wage and services price dynamics.