Inflation is not done with the French. According to IRI data from July 2022, its rate has increased by 6.71% in one year. That is 1.61% more compared to the previous month. The reason for this increase? The cost of energy and the value of foodstuffs, indicates a study by INSEE. The conflict in Ukraine has accentuated the scarcity of certain products… de facto inflating their price.
Some French forecasters are even more pessimistic: inflation, according to the EDMP concept (Enseigne à Dominante Marques Propres), is envisaged at 2.68% against 2.5% in another estimate.
Therefore, it is apparent that inflation has impacted the price of foodstuffs, most of them food. The slideshow below presents 9 products whose prices have continued to climb for a year, according to a study on the price of foodstuffs, by IRI Vision of July 2022 as well as on the basis of information from 60 million consumers and BFMTV.
Christine Lagarde, President of the European Central Bank, said in a seminar: “The ECB will go as far as necessary” to support the countries that are victims of this economic phenomenon, recalls the media Les Echos. According to the newspaper, if the banks cannot act in the short term in the face of rising prices, they can in the medium term lower it by 2%.
How ? They can raise their key rates. Which is not an easy solution, because, says the newspaper: “monetary tightening must not stifle economic growth, which continues to slow down, risking triggering a situation of stagflation”. That is, a prolonged period of low growth and high inflation, according to Le Figaro.
