Inflation In France Hits 37-Year High

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Nancy Heslin   Forbes Monaco

Inflation In France Hits 37-Year High

The French national statistics agency, INSEE, has reported inflation in May hit 5.8%, up from 5.4% in April.

For the year May 2021 to May 2022, inflation in France surged to a 37-year high at 5.2%.

Food price increases over the year exceeded 6% in some categories, including meat (+15.54%), pasta (+14.93%), oil (+8%), eggs (+6%) and rice (5.97%).

According to a NielsenIQ poll, eight out of 10 French people now say they are watching their spending and almost four out of 10 feel weakened by price increases. 

In grocery stores, sales of fresh produce have dropped 5.7% (organic -6.3%), chocolate bars by 10.3%, spices, herbs and peppers are down 12.4% and pasta has plummeted by 9.3%.

For beverages, alcohol and beer sales have tumbled 15% and fruit juices by 10%.

Meanwhile Europe’s statistics office reported Tuesday that for the month of May, inflation across the EU was 8.1%, up from April’s record high of 7.4%.

France’s annual inflation rate is fairing slightly better than Germany (8.7%) and Spain (8.5%) but is driven by a 7.5% rise in food, alcohol and tobacco prices as well as soaring energy costs—a record annual consumer price increase of 39.2%—which will continue to climb as EU leaders announced on Monday a 90% ban of Russian crude oil by the end of the year.

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Nancy Heslin   Forbes Monaco

Nancy Heslin is an established journalist and lifestyle writer. She has been the Editor-in-Chief of Forbes Monaco magazine (bimonthly in English) , since the magazine's 2nd issue . Launched in November 2018, Forbes Monaco is part of the Forbes family, with its 7 million readers and 71 million monthly website visitors worldwide.