Inflation could reach 5.8% in June according to INSEE figures. Meanwhile, the purchasing power of the French continues to decline ever further. If these figures should be confirmed on July 13, this forecast already makes it possible to estimate the amount of the revaluation of the Livret A rate which will take place from August 1.
Indeed, twice a year, it is revalued to adapt to the level of rising prices. This calculation thus takes into account the average annual inflation excluding tobacco over the last six months as well as the half-yearly average of short-term rates in euros.
This change takes place on February 1 and August 1. For the moment its rate stands at 1% but the sharp increase in prices in recent months should lead to a significant revaluation.
If the six-month average for inflation is estimated at 4.55%, interbank rates should approach the average of -0.58%, reports Capital. Thus, the yield of the Livret A will be around 1.985%. However, as provided for in the decree of January 27, 2021 relating to interest rates for regulated savings products, this rate must be rounded off to the tenth of a point. This means that it should most likely reach 2%.
Good news therefore for holders of a Livret A, but also for holders of a sustainable and solidarity development booklet, which will be aligned on the same rate. If the daily life of some French people will be improved, this evolution will still be far from reaching that of inflation.