France’s Inflation Stays Below 1% as Energy Weighs on Prices (1)

French inflation was stable in July at a level well below the European Central Bank’s 2% target, supporting the case for policymakers to keep the door open to more interest-rate cuts.

The reading came in at 0.9%, the same rate as in June, statistics agency Insee said Thursday. The median estimate in a Bloomberg poll of analysts was for consumer prices to rise 0.8%.

The soft data reflects a benign inflation situation in the euro area that some ECB officials say may warrant a resumption of policy loosening later this year. Last week, they kept rates on hold ...