Inflation is rising in France due to food prices

Inflation is rising in France due to food prices

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PRICE INCREASE – This time it is not the rise in energy prices that pulls the whole issue. According to provisional data from INSEE, published this Friday, April 29, consumer prices continued to rise in April in France, reaching 4.8% on an annual basis. The number reached in March was already high, unprecedented since the mid-1980s.

“In a month, consumer prices would rise by 0.4%, after 1.4% in March,” writes the statistical service, which notes that prices of energy and industrial products are showing signs of falling relative to falling oil prices in the markets.

3.8% increase over one year for food

On the contrary, the provisional data show a rather significant acceleration in the prices of services, “especially due to the strong seasonal recovery in the prices of transport services. “Rising food prices would be more sustained than last month,” the institute added.

For food, inflation rose to 3.8% in one year, after rising 2.9% in March. Prices of industrial goods and services increased by 2.7% and 2.9% respectively compared to April 2021.

The Familles Rurales consumer association – which raises product prices from a large average French basket – also reports price increases for several products: “A kilo of first-class couscous is 1.29 euros! “A year ago, it was 0.96,” volunteer Catherine Cahuzac told AFP in an area.

In this store, for example, it shows a 34% increase in one year for the first-class semolina or 12% for the pasta of the supermarket brand … “On the other hand, the rice did not move”, he notes. In April, inflation should actually reach 10% in the oil category, according to The Parisian. It was 7.4% in March.

At its last price observatory in January, the association had estimated that the average food budget needed to feed a typical family (two adults, a teenager and a child) was at least € 450 a month, changing products less by € 696. with the consumption of first price products, 765 euros with products of national brand (such as Panzani, Danone for example) and can go up to 1,148 euros for all organic.

Less steep rise in France than in other EU countries

Rising prices in France are part of a wider trend affecting the vast majority of countries around the world, with inflation returning to Europe and the United States after years of low prices.

The reasons are multiple: tensions in raw material markets and supply difficulties linked to the war in Ukraine, ports temporarily closed in China, weather vagaries or rising international demand in a recovery environment. economy in 2021 (although this recovery has stalled in recent months).

Europe is also feeling the effects of the fall of the euro against the dollar on the prices of some of its imports. Finally, as unemployment has fallen, giving workers better bargaining power, some economists also fear that wage increases will put pressure on prices and thus create a vicious circle that will be difficult to escape, especially in the United States. .

On Thursday, European Central Bank Vice President Luis de Guidos said, however, that inflation in the eurozone was “very close” to its peak. Thus, on the same day, Germany announced a one-year inflation rate of 7.4% in April, from 7.3% in March. The index reached 8.4% in Spain, down from March (9.8%).

Inflation in Italy is expected later Friday morning. INSEE is due to release its final inflation estimate in April on 13 May.

See also at The HuffPost: With budget folders, they alleviate the stress of their money



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