4.8% confirmed in April and beyond?

[INFLATION FRANCE] The National Institute of Statistics confirmed on Friday that inflation rose by 4.8% in April.

[Mise à jour du vendredi 13 mai 2022 à 10h25] It’s certain. INSEE revealed on Friday that consumer prices rose 4.8% last month on an annual basis. that it Its highest level since November 1985. “The prices of manufactured goods slowed down (+0.5% after +1.4%). Prices for services accelerated (+0.7% after +0.2%) in particular due to the sharp seasonal recovery in transportation prices (+9.4% after −0.9%)”, he notes. Institute. Here’s what to remember:

  • Food: + 3.8%
  • Fresh produce: +7.1%
  • Tobacco: -01%
  • Manufactured goods: +2.6%
  • Energy: +26.5%
  • Services: +3%

Inflation does not seem determined to stop. The institute has already forecast higher inflation in the coming months. It is expected to reach 5% in May, then 5.4% in June, according to the latest economic report. Food prices are expected to rise very sharply: +6.3% in June. In the absence of a tariff shield and an 18-cent discount on the price of fuel, the National Institute of Statistics and Information estimates that inflation will exceed 7% within one year in May.

“We are a country in the eurozone where inflation is the lowest,” Gabriel Attal said after the cabinet. The Government Spokesperson announced, the introduction of the Finance Amendment Bill “in the wake of the legislative elections”, in order to implement several measures of purchasing power that Emmanuel Macron had promised during the presidential campaign:An extension of the tariff shield until the end of 2022, uA target scale for senior riders, andTV license fee cancellation,e triple Macron’s bonus,melting point index, lReassessment of social benefits, pensions andCreate a food voucher. To learn more, see our dedicated profile:

The economic recovery following the health crisis caused by the coronavirus has led to supply tensions. With more demand than supply, consumer prices for some goods started to rise again. The recovery has also been accompanied by very strong energy demand worldwide, particularly in Asia. As a result, gas, oil and electricity prices are rising. To reduce the effects of the recovery on families, the French government put in place several aids: an inflation bonus, a tariff shield, an additional energy check of 100 euros … However, these measures proved to be insufficient, due to the conflict in Ukraine, which began on February 24. The war between Russia and Ukraine caused a sharp rise in the market for goods (oil, gas, wheat, etc.). As a result, the Executive was forced to review its version, and put in place a plan for flexibility.

Inflation is not without its impact because it risks weighing on growth. INSEE expects “modest” growth of 0.25% in the second quarter. The same story for the Bank of France. The corporation now expects growth of 0.2% in the second quarter. “It’s not great, but after a shock like (the war in Ukraine), it’s resilient,” Bank of France Governor Francois Villeroy de Gallo commented in front of France Inter’s microphone, stressing that “activity and employment continue.” But inflation is rising sharply.”

What is inflation? Definition of

Inflation means a A general increase in the prices of goods and services during a certain period. There is talk of a rise in the cost of living or a decrease in purchasing power. In France, inflation is measured by the INSEE consumer price index, which itself is an average of many differences in the cost of certain products. We talk about inflation when the average of all these cyclical groupings shows a rise in prices. Some increases may be offset by decreases in other sectors; In this case, there is no hypertrophy. The opposite of inflation is deflation. Inflation is taken into account to calculate the increase in the minimum wage each year.

Where is the inflation in France? Historical

In April 2022, consumer prices rose 4.8% year over year, after rising 4.5% in March 2022 and 3.6% in February. Below, for information purposes, has the CPI evolution year-over-year since 2017:

To calculate inflation, INSEE takes into account 22 short-term groups that include different products. At the end of each month, INSEE compares the selling prices published during the previous month with those of the previous quarter. Thus we conclude whether there is inflation or deflation.

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