French inflation continues to pick up in April to highest since July last year

France’s headline CPI rose to 2.2% year‑on‑year in April (vs 2.0% expected; prior 1.7%), with the harmonised index (HICP) at 2.5% (vs 2.3% expected; prior 2.0%). Energy was the main driver, surging 14.2% y/y (up from 7.4% in March), while food inflation eased to 1.3% and services inflation picked up to 1.9%. The piece notes the Middle East conflict’s impact on energy prices and warns higher inflation will weigh on French consumption and domestic demand. Market relevance: upside inflation surprises may complicate the growth outlook while feeding into ECB policy and EURUSD volatility.