France recorded a slight increase in its annual inflation rate in June, reaching 0.8%, up from 0.6% in May, according to data released by the French national statistics agency (INSEE).

Despite the uptick, inflation remains below the 2% target set by the European Central Bank (ECB), reflecting continued price stability across the eurozone, which consists of twenty member countries.

The rise in France’s inflation was mainly driven by higher service costs, which climbed by 2.4% in June compared to 2.1% in May. Meanwhile, prices for manufactured goods declined by 0.2% for the second consecutive month.

These figures support the ECB’s ongoing policy of monetary easing, which has included eight interest rate cuts over the past year. ECB President Christine Lagarde recently stated that the cycle of financial easing is nearing its end, affirming the bank’s readiness to address various global challenges—from trade disruptions to the ongoing conflict between Iran and Israel.