According to INSEE, inflation was mainly driven by a rapid rise in energy prices, which rose 7.4 percent year-on-year after falling 2.9 percent in February, largely due to higher petroleum product prices.
Prices of services rose slightly faster, up 1.7 percent from a year earlier, compared with 1.6 percent previously. Tobacco prices also accelerated, rising 3.2 percent after a 3 percent increase in February.
The CPI rose 1.0 percent in March, after a 0.6 percent rise in February. INSEE said the increase was mainly driven by energy prices, which went up 8.9 percent month on month following a 0.3 percent increase in February, with petroleum product prices surging 17.1 percent after a 1.8 percent rise in the previous month.
Underlying inflation stood at 1.1 percent in March, up from 0.9 percent in February, INSEE said.
Amid rising oil prices in Middle East tensions, France has rejected calls for broad-based tax cuts, citing fiscal constraints and concerns over efficiency. Instead, Paris has introduced targeted support for transport, agriculture and fisheries, while offering liquidity support to small businesses through state-backed loan schemes.
