France’s preliminary Harmonised Inflation Rate year-over-year rose to 1.1% from the previous 0.8%, marking a 0.3 percentage point increase. This indicates a higher inflationary trend compared to the prior period.
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The actual inflation rate of 1.1% came in below the analyst estimate of 1.3%, suggesting a less intense inflationary pressure than anticipated. This unexpected moderation is likely to have a calming effect on the stock market, particularly benefiting interest rate-sensitive sectors such as real estate and utilities. The market impact is expected to be short-term, driven by sentiment around inflation expectations.