Sunday, May 14, 2023

Inflation in France rising

 It’s reported that inflation in France accelerated in April, driven by a surge in energy prices - data published by the national statistics bureau Insee.

‘Consumer prices rose by 5.9% last month on an annual basis, up from 5.7% in March. Energy price growth soared to 6.8% in April after a 4.9% increase in March, mainly due to rising fuel costs.   

Meanwhile, the increase in gas prices eased from the March reading of 35.6%, coming in at 22.9% higher year-on-year in April.   

Food prices climbed 15% year-on-year, slightly lower than the March reading of 15.9%. The downtick was attributable to a seasonal decline in the prices of fresh goods. However, despite the slower pace of price growth, Insee economists said that soaring food costs have had a more significant impact on overall inflation than rising energy costs.   

A recent survey by market research firm Elabe showed that 43% of French consumers have cut back on buying certain food items due to inflation. 

43% reported having cut down on meat, 34% were buying less fish, and 27% had given up cakes and biscuits. According to the survey, most French consumers have had to adjust their shopping habits, with 44% opting for cheaper food and 30% now buying smaller quantities.   

In March, the French authorities introduced a so-called “anti-inflation food basket,” comprising about 50 basic items and obliged large retailers not to hike prices on these staples until June.’

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