Inflation fell sharply for the month of May 2023. According to figures recently published by INSEE, it would have slowed down by 5.1% over one year and fallen by 0.8% in one month. (5.9% in April). These statistics evoke good news for the purchasing power of the French, but less so for the remuneration of their savings. Indeed, the yield of the People’s Savings Book (LEP) is based on the consumer price balance. More specifically, the LEP remuneration corresponds to the average of annual inflation over the last six months. For example, for the next revision of the interest rate of the People’s Savings Account (LEP), which will take place on August 1, the inflation observed between January and June 2023 will be taken into account.
Even if the executive predicted a drop in consumer prices after the summer period, this seems to have arrived in advance. The National Institute of Statistics and Economic Studies also anticipates inflation of 4.6% for the month of June. As a result, holders of the People’s Savings Book (LEP) will soon see a rate change that is similar to a fall. This should reach 5.6%, a drop of 0.5%, from the next revaluation on August 1st.
Conversely, the Livret A rate should increase. However, this expected upward trend will be limited: “Given the impact of this revaluation for banks and the social housing sector – financed in part by the collection of the Livret A -, the Governor of the Banque de France and Bercy is very likely to limit the revaluation of the preferred savings account of the French to 3.5%”, as stated by Capital. This situation could therefore revive competition between these two booklets, while the LEP had begun to attract more and more low-income households.
