(MENAFN- Trend News Agency)
Following a steady growth during the summer, the year-on-year
inflation in France is expected to stabilize between 6.5 and 7
percent in the autumn, the French National Institute of Statistics
and Economic Studies (INSEE) said, Trend reports citing Xinhua .
At the same time, the annual inflation should be around 5.5
percent in 2022, up from 1.6 percent in 2021, it said.
According to the INSEE, the yearly consumer price index (CPI)
reached 5.2 percent in May, a peak not seen since 1985.
This can be put down to household consumption, the weight of
energy in prices and the recent measures to limit inflation, the
Capping regulated gas and electricity prices helped to reduce
inflation by about two percentage points in May, the INSEE
Provided that the 'tariff shield' is upheld until the end of the
year, inflation fueled by high energy prices is expected to
decrease progressively until the end of the year.
Nevertheless, due to an increase in production costs, the price
of food and manufactured goods will increase, the institute
The INSEE expects that growing inflation will trigger an
automatic revaluation of the guaranteed minimum growth wage this
summer or the beginning of autumn.
On the positive side, the INSEE foresees a possible improvement
in purchasing power in the second semester due to the additional
income support measures.
However, the yearly purchasing power will, on average, decrease
by 0.6 percent, the INSEE estimates.
'The international economic environment is largely dependent on
the geopolitical and health developments, but also on the reactions
of the economic policy towards the increase in inflation,' the
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