16 May 2023
Inflation accelerated in France in April, predominantly fuelled by soaring energy prices, according to recent data by national statistics bureau Insee.
The figures showed that consumer prices in France increased by 5.9% in April on an annual basis, a rise from 5.7% the month before.
Whereas energy prices rose 6.8% in April following a 4.9% rise in March, primarily due to surging fuel costs. The rise in gas prices, however, eased in April with a year-on-year 22.9% rise, compared to 35.6% in March, Mena FN reports.
There was also a considerable rise in food prices in France last month, rising 15% year-on-year, although a marginal decline from March’s 15.9% reading. The fall was attributed to a seasonal decline in fresh goods’ prices. That said, despite the price growth slowdown, rising food costs have had a bigger impact on overall inflation than rising energy costs, say Insee economists.
In addition, 43% of consumers in France have reduced spending on certain food items due to inflation, as per the findings of a survey by market research company, Elabe.
According to this poll, the majority of French consumers have adjusted their spending habits, with 44% now opting for cheaper food items and 30% now buying less quantities.
Rising inflation has led to significant changes in the purchasing behaviour of French consumers. This trend could lead to broader implications for the country’s economy as consumer spending makes up a considerable amount of France’s GDP. As a result, policymakers are urged to closely monitor inflation and take the appropriate steps to safeguard the country’s economic stability, the Mena FN report goes on to say.