Shares of French luxury companies, including Hermès, rose on June 12, 2026, following new inflation data from INSEE. France's Harmonised Index of Consumer Prices (HICP) rose to 2.8% year-over-year in May. This marked its highest point since 2024. Hermès (RMS.FR) stock climbed 4%.
The market responded positively, citing the luxury sector's resilience in high-inflation environments. Historically, luxury brands pass increased costs to their affluent customer base without significantly impacting demand. This pricing power suggests companies like Hermès can maintain profit margins despite rising costs.