INSEE confirms the decline in inflation in France

INSEE confirms the decline in inflation in France
INSEE confirms the decline in inflation in France

Inflation is experiencing a slight slowdown in France, indicated the National Institute of Statistics and Economic Studies (Insee) on May 15, thus confirming the previous figures communicated for the month of April of the current year.

Inflation slowed to 2.2% during the month of April. INSEE, which revealed these figures, explains this downward trend by the slowdown recorded in the prices of food products, as well as the decline in the prices of manufactured products. Thus, after inflation of 2.3% in March, the decline “ results from the slowdown over one year in the prices of food (+1.2% after +1.7%) and tobacco (+9.0% after +10.7%) », Underlines the institute. The prices of manufactured products even saw a slight decline, going from +0.1% in March to -0.1% in April.

For their part, the prices of services, which represent almost half of consumption, remained in the same vein as in March. They increased over one year by +3%. It should be noted, however, that over one month, inflation accelerated to 0.5%, whereas it was only 0.2% in March, according to INSEE figures. This increase over one month confirms a development due in particular to the increase in prices of services which increased by +1%, after stability in March. On their side, ” prices of manufactured products and tobacco are stable » over a month.

Inflation falls, consumption falls

The harmonized consumer price index (HICP), which allows comparisons with other EU countries and is of particular interest to the European Central Bank for its monetary policy, increased by 2.4% in April 2024, i.e. the same proportion as in March. This same index increased by 0.6% over the month, after an increase of 0.2% in March.

It must be said that despite this decline in inflation, household consumption is not increasing again. This is the observation of the group’s CEO U system, Dominique Schelcher, fourth major retailer. This manager affirmed on the microphones of BFMTV-RMC to have identified an amplification of the phenomenon of “deconsumption” in his stores, with in particular fewer equipment products and fluctuating meat consumption.

There are signs of de-consumption, clearly. The inflationary crisis is behind us, but there remains a purchasing power problem. This tension, for months, has weighed on people’s choices, they arbitrate », notes the manager. Thus, the French continue to be sober when purchasing due to the decline in purchasing power.

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