France: inflation at the top for 35 years, but… energy policy helps
France is also struggling with imported inflation for energy factors, but controls it a little better than Italy and Germany. The annual inflation rate in France was confirmed at 6.1% in July 2022, the highest since July 1985, up from 5.8% the previous month. There was an acceleration in the prices of services (3.9% against 3.3% in June), food (6.8% against 5.8%) and, to a lesser extent, the prices of manufactured goods (2 , 7% versus 2.5%). Meanwhile, energy prices slowed slightly (28.5% vs 33.1%). The annual core inflation rate, which excludes volatile items such as unprocessed food and energy, hit a record 4.3% in July . On a monthly basis, consumer prices increased by 0.3%, in line with the preliminary estimate, slowing from the 0.7% increase in the previous month. The harmonized index of consumer prices increased by 6.8% year-on-year, an all-time high, and by 0.3% compared to the previous month.
Here is the one-year chart
And a longer term one, which shows the last time these price levels were reached.
However, France is doing a little better only because the cost of energy has been contained, especially due to the limitations on the increase imposed by the government which has given a ceiling of 4% to the increase in the cost of electricity, which has could do because he has control of the EDF group. This is facing billionaire losses, but at least the impact on companies, on families and on prices remains limited. However, EDF cannot hold up at this rate for long.
We are back to 1985 inflation, but with far fewer hopes, opportunities and tools for growth. we just have the French 1985 music …
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The article France: inflation at the top for 35 years, but… it helps energy policy comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/francia-inflazione-al-top-da-35-anni-ma-aiuta-la-politica-energetica/ on Fri, 12 Aug 2022 15:20:37 +0000.