It is now confirmed. Between 2022 and 2023, the richest resisted inflation much better, reveals a study by the National Institute of Statistics and Economic Studies (Insee) published Thursday, November 21. Last year, prices increased by 4.9% on average, with the increases being most pronounced in food, housing and transportation. The additional cost linked to inflation represented on average 1,230 euros per year per person, reveals INSEE in this “portrait social” of France. This sum is greater for the wealthiest 10% of French people (2,170 euros) than for the poorest 10% (730 euros).
However, compared to the standard of living, the extent of the shock was “twice as large for the poorest 20% as for the wealthiest 20%”according to INSEE. For the poorest 10%, losses represented 7.1% of their income, compared to 3.1% of those of the richest 10%. INSEE also notes that single-parent families and single people were more affected than other households by the additional weight of these expenses on the standard of living.
Furthermore, the fiscal and social policy of Elisabeth Borne's government has not “only very slightly amortized the additional cost of expenses linked to inflation”writes INSEE. At the time of the end of “whatever it takes”, several one-off aids put in place during the energy crisis have in fact not been renewed in 2023. INSEE cites the exceptional back-to-school bonus, the inflation compensation or the exceptional payment of 100 euros associated with the energy check. These decisions mainly affected the lowest 40%, who saw their standard of living fall by 160 euros compared to the previous year.
Conversely, new aid has emerged in 2023, such as the deconjugalization of the allowance for disabled adults (AAH), the last stage of the exemption from housing tax on main residences or the increase in the Christmas bonus for single-parent families. In total, these additional transfers mainly benefited the wealthiest, due to the end of the housing tax. The richest 10% thus saw their standard of living increase by an additional 310 euros per year (0.4% of their standard of living), while the poorest 10% received “only” 170 euros. more (1.7%), thanks above all “to the revaluation of services”.
In total, 5% of additional inflation-related spending was covered, on average, by government policy. But, for the 20% of the wealthiest, changes to this policy have made it possible to cover “nearly 15% of additional expenses”there again “mainly due to
of the last stage of tax exemption “dwelling”notes INSEE. Conversely, the 20% of the most modest have experienced “a loss in standard of living of 30 euros, which is added to the already high weight of additional consumer spending”.
More generally, the French received on average an additional 580 euros in 2023 (2.1% of their standard of living) due to the increase in wages (180 euros for the lowest 20% and 1,170 euros for the 10%. of the richest). The evolution of wealth income represented, on average, a gain of 350 euros per person – an amount which also differs depending on the standard of living.
Clearly, the incomes of the wealthiest have increased more quickly than those of the poorest, better enabling them to maintain, or even improve, their standard of living in an inflationary context. Thus, the improvement in wages and income from assets made it possible to offset 120% of the additional expenses linked to inflation for the wealthiest 20%, compared to only half for the poorest 20%.
In total, taking into account the evolution of income and government policy, pFor 60% of French people, the increase in the standard of living has made it possible to offset at least 90% of expenses linked to inflation, compared to only 30% for the most modest 10%, and between 60% and 85% for the others. This observation remains true even when including the increase in property taxes, partly decided by local authorities, and which particularly weighed on the wealthiest.
