INSEE confirmed its first estimate on Wednesday morning.
Strong in Europe, at its highest in the United States, inflation is also massive in France. This Wednesday, INSEE published its final estimate of the consumer price index in May. This confirms its first analysis, published two weeks ago. “Over one year, consumer prices increased by 5.2%, after +4.8% in April. This rise in inflation is the result of the acceleration in energy prices […]services […]food […] and manufactured goods“, Details the note.
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In detail, many sectors are seeing their prices increase. This is particularly the case for energy, driven by gasoline and diesel, which are reaching record levels, and gas, which are accelerating. The same goes for the prices of accommodation, catering, insurance, social protection services,rent, water, garbage collection» or the prices of maintenance and repair of private vehicles and those of manufactured products, which are all accelerating.
Conversely, others saw the rise slow over the month. INSEE thus cites the prices of electricity, transport services, including air and road, or even health and communication services, where the pressure is easing slightly. In food, the situation is mixed: the prices of fresh fruit have fallen and those of fresh vegetables have almost stagnated, leading to a marked slowdown in inflation affecting fresh products. At the same time, prices for meat, poultry, milk, cheese, eggs, oils, fats, coffee and bread and cereals all accelerated.
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Ways to protect purchasing power expected in early July
At the end of last month, national statisticians forecast inflation in May of 5.2% year on year, after 4.8% in April. This figure exceeded, for the first time in thirty-seven years, the symbolic bar of 5%. The increase was particularly noticeable in food (4.2% annual increase in May), in energy (28%) and services (3.2%), specified INSEE. In addition, the monthly increase in the harmonized index accelerated to 0.7%, against 0.5% the previous month, noted the institute.
This subject is being watched closely by the authorities, who believe that too high inflation could weaken growth and consumption. The government must bring, in the coming weeks, an exceptional bill on purchasing power, aimed at protecting the portfolio of households. This text could be presented to the Council of Ministers in early July.
However, France remains relatively spared compared to its European neighbours: in May, the inflation rate was twice as high in Slovakia, the Netherlands and Greece, three times higher in Latvia and Lithuania and nearly four times higher in Estonia, according to Eurostat. The tricolor monthly rate was also among the lowest of the twenty-seven.
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