In August, the inflation rate in France further fell below the European Central Bank's target of 2%.

Due to the slowdown in service prices, the inflation rate in France in August was further below the European Central Bank's target of 2%. The French National Statistics Office said on Friday that the index decreased by 0.8% compared to the same period last year, continuing to be below 1% for the seventh consecutive month. Analysts had previously expected the increase in August to be the same as July, reaching 0.9%. Despite weaker price pressures in France compared to most other countries in the eurozone, the overall inflation level in the eurozone currently meets the European Central Bank's target. In the face of US trade volatility, the economy has also shown resilience, and policymakers are expected to keep interest rates stable at 2% for the second consecutive month in September. Investors are no longer fully pricing in further declines in borrowing costs this year.