The government is making the purchasing power of the French a priority. To cope with galloping inflation – 5.2% in May over the rolling 12 months according to INSEE – the executive has been working for several weeks on various measures, in order to help households. These devices will be all the more welcome, since, according to the French Observatory of Economic Conditions (OFCE), purchasing power could decline by 0.8% this year. And this, despite the support measures already in force or to come. With inflation estimated at 4.9% on average over the year and economic growth reduced to 2.4%, “this contraction in purchasing power will weigh on the recovery dynamic through the weak consumption dynamics of households”, observes the independent French organization for research, forecasting and evaluation of public policies. According to its new economic forecasts for 2022 published this Thursday, June 9, households will thus be forced to curb their consumption, already down 1.5% in the first quarter.
Worried about the future, the French who can prefer to invest their money. The savings rate should also reach 16.7% this year. “Households continue to save nearly 2 points more than ‘They didn’t do it in the past (before the pandemic, editor’s note),’ said Mathieu Plane, deputy director of the OFCE’s analysis and forecasting department, during a press conference. This phenomenon is explained by the fact that it is above all wealthy households who have been saving since 2020. They can afford to do so because they suffer the shock of inflation to a lesser extent, compared to low-income households. Households also remain cautious in the face of geopolitical uncertainties, judges the expert. However, consumption is expected to jump 2.5% in 2022 compared to last year.
Various measures will nevertheless “make it possible to very strongly limit the loss of purchasing power”, he recalls. Which ones can you be eligible for, depending on your profile? The point in our slideshow.
