Banque de France Raises 2026 Inflation Forecast to 2.5%

The French central bank has significantly revised its 2026 inflation forecast upward to 2.5%, from a prior estimate of 1.7% — a 0.8 percentage point increase. This signals persistent price pressures in the eurozone's second-largest economy. EUR/USD and EUR/GBP are the primary pairs to watch. Stickier French inflation could complicate ECB rate-cut timing, potentially offering mild euro support if markets price in a more hawkish ECB stance.