France's annual consumer inflation accelerated to 2.1% in July, exceeding market expectations, according to provisional data released Friday.
The annual rate rose from 1.8% in June, while economists had expected it to remain unchanged at 1.8%, the French National Institute of Statistics and Economic Studies said.
The acceleration was mainly driven by stronger increases in services and energy prices.
Services prices rose 2.3% year on year in July, up from 1.9% in June, led particularly by accommodation and communication services.
Energy inflation accelerated to 12.4% from 11% due to higher gas and petroleum product prices.
Food prices increased 0.9% annually, unchanged from the previous month, while fresh food inflation climbed to 3.8% from 2.7%.
Prices of manufactured products fell 0.7% year on year, compared with a 1.1% decline in June.
On a monthly basis, consumer prices increased 0.6% in July, rebounding from a 0.3% decrease in June.
The monthly increase reflected seasonal rises in transport and accommodation service prices, as well as higher energy costs. Manufactured product prices declined due to summer sales.
The EU-harmonized consumer price index rose 2.4% year on year, up from 2% in June, and increased 0.6% on a monthly basis.
