In an initial estimate unveiled this Tuesday, Insee reveals its figures. This threshold had not been reached since September 1985. The rise in prices and the accompanying decrease in purchasing power have led to a drop in consumption. The gross domestic product (GDP) contracted by 0.2% in the first quarter in France.
The month of April was already marked by its highest score in nearly 37 years at 4.8%. The 5% threshold had not yet been reached since September 1985. And the situation is not expected to improve next month, anticipates Insee, which is set to publish its final estimate in mid-June. In its latest economic report, the institute anticipated inflation of 5.4% over one year in June.
In detail, all consumption categories recorded by the National Institute of Statistics are affected by the price increases. However, it is energy prices that are experiencing the highest growth. They accelerated by 28% over the year, following a 26.5% increase in April.
Finally, regarding food prices, they rose by 4.2% in May (3.8% last month). Similarly, service prices reached 3.2% (3% in April).
