Inflation increases while the purchasing power of the poorest decreases, due to a future rise in the minimum wage.
Inflation accelerated further to 5.8% over one year in June, INSEE said on Wednesday, confirming its first estimate published at the end of June, which will lead to a new automatic revaluation of the minimum wage by 2.01% on August 1. The rise in prices (excluding tobacco) between March and June for the 20% of households with the lowest incomes reached 2.01%, this indicator serving as the basis for triggering automatic revaluations of the Smic, specified the National Institute statistics at AFP.
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Fourth increase in the minimum wage in less than a year
This is the fourth increase in the Smic in less than a year, the last having taken place on May 1, with an increase of 2.65%.
The net hourly minimum wage will increase from 8.58 euros to 8.76 euros and for full-time, the net monthly minimum wage will increase from 1302.64 euros to 1329.06 euros, said the Ministry of Labor. In addition to the annual revaluation of January 1, the Smic is indeed mechanically increased during the year by the amount of inflation for the 20% of households with the lowest incomes, if this exceeds 2% compared at the last increase.
Price increase
In June, the rise in prices was driven by the further acceleration in energy prices (+33.1% year on year after +27.8% in May), food (+5.8% after +4.3%) and to a lesser extent service prices (+3.3% after +3.2%), details INSEE. Conversely, the prices of manufactured products slowed (+2.5% after +3%).
The governor of the Banque de France, François Villeroy de Galhau, called on franceinfo on Wednesday morning to “combat” and “reduce inflationwhich is, according to him, “much too high“. Asked about possible additional government measures to combat rising prices, he rejected any “budget solution” of style “no matter what” because “we don’t have the means and it’s not at all effective“, he judged.
Core inflation (excluding energy and food) remained stable over one year at +3.7%, while the harmonized consumer price index (HICP), which serves as a basis for comparison at European level , was up 6.5% year on year, after +5.8% in May.
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