French consumer price inflation picked up slightly in December due to increases in the price of services such as rents.
Analysts said there was little to alarm the European Central Bank in the data released today, however.
Prices paid by consumers in the euro zone's second biggest economy rose 0.2 per cent from the previous month and climbed 1.7 per cent from a year earlier, according to national statistics office INSEE's European Union harmonised measure of inflation.
Economists polled by Reuters had on average expected the annual inflation rate to remain unchanged from November's 1.6 per cent rate but were not overly concerned by the slightly higher annual outcome.
INSEE said the rise in December consumer prices was largely due to services becoming more expensive.
Rising rents, water charges, and household waste disposal costs contributed to a monthly rise of 0.5 per cent and annual rise of 2.7 per cent in overall service prices.
The data comes a day after the ECB, whose mandate is to ensure price stability in the euro zone, held interest rates unchanged yesterday and left the door open for an increase in March to keep euro zone inflation pressures under control.