The French are still curbing their spending, but the outlook is improving with inflation falling sharply. This is what the latest figures published on Thursday, November 30, by the National Institute of Statistics and Economic Studies (Insee) reveal. While household consumption stabilized in September, it recorded a drop in October of 0.9% over one month.
Inflation therefore slowed significantly in France in November, to a level of 3.4% over one year – and 4% in October –, according to provisional data from INSEE. “Overall, inflation today has been defeated, and it is a real economic success,” the Minister of the Economy, Bruno Le Maire, said on France Inter. According to INSEE, “this drop in inflation is due to the slowdown over one year in the prices of services, energy and, to a lesser extent, manufactured products and food.”
Energy prices rose 3.1% year-on-year in November
Energy prices would have increased by 3.1% year-on-year in November, compared to an increase of 5.2% in October, according to these provisional data. According to this first estimate from INSEE, prices of services increased by 2.7% year-on-year in November (3.2% in October) and those of manufactured products increased by 1.9% (2.2% in October).
On the food side, the overall price increase slowed slightly to 7.6% year-on-year in November (7.8% in October).
Energy and food consumption down sharply
Year-on-year, consumer spending on goods decreased by 1.3% and by 0.5% over the quarter. Those of manufactured goods showed a fall of 1.8% over the year. However, this is incommensurate with energy consumption, down 2.5% in September. A decline which is mainly explained by the decline in electricity and gas consumption, probably linked to the mild weather conditions in October, estimates INSEE.
After experiencing an increase of 1.2% in September, food purchases recorded a decline of 1.5% in October. Beverages, agricultural products, rice and flour, as well as processed fish, are among the foodstuffs most impacted by the decline in consumption. Vestiges perhaps of the new reflexes adopted by the French to adapt to the rise in prices, which was around 13% over one year last September.
New cars are popular
Consumption of manufactured goods experienced a “slight rebound” (0.4%, after a drop of 0.4% in September), and that of durable goods rebounded more clearly (0.5% after a drop of 0.4%). in September). Purchases of new cars are notably increasing.
Spending on textile clothing increased by 0.5% in October. But purchases of shoes and leather are falling. Finally, purchases in the “other manufactured goods” category are almost stable (0.1% after a drop of 0.2%).