French inflation falls back to ECB target in June as it slows for first time in 2026

June 30 (Reuters) - French ‌inflation slowed ​in ​June for the first time this year, pulling back from ‌a more than two-year high as energy ⁠prices ebbed, preliminary data from statistics agency INSEE ‌showed on Tuesday.

• ‌The harmonised rate in the euro zone's second-biggest economy, adjusted for comparison with ​other EU countries, fell to 2.0% year-on-year in June, in line with the ⁠European Central Bank's target

• The preliminary reading was down ​from 2.8% in May, snapping five consecutive months of acceleration that had ​begun in January

• The ‌June rate came in well below a Reuters poll of 17 ⁠analysts' expectations, which had an average forecast of 2.3%

• The slowdown was mainly due ⁠to a 5% monthly decrease in energy prices, particularly ​petroleum products, which nonetheless remained high at +11.2%, after climbing sharply since the start of the Iran ‌war

• Services inflation also eased, to 1.8% from 2.1% in ‌May, while manufactured goods prices fell for ⁠a third straight ‌month, deepening to -0.9% ​from -0.6%

(Reporting by Gianluca Lo Nostro; Editing by Andrew Heavens and Sharo ‌Singleton)

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