After a rebound in exit from health crisis », French economic activity then showed itself to be “significantly less dynamic” at the end of the year, due to a decline in household consumption due to inflation. Gross domestic product (GDP) increased by 2.6% in 2022, according to figures released on Tuesday January 31 by the National Institute of Statistics and Economic Studies (Insee). The figures are better than expected, however, as he expected GDP to rise by 2.5% and contract by 0.2% in the fourth quarter.
At the same time, household consumption expenditure on goods fell by 1.3% in France in December, notably weighed down by purchases of food products, which fell by 1.7%, again according to INSEE. In a context of sharp price increases (approximately 6% over one year), “over the whole of the fourth quarter of 2022, household consumption of goods fell by 1.9%”, specifies the institute. Consumption of foodstuffs fell by 2.8%.
Decreased consumption of food products
In November, the indicator rose by 0.6%, after a sharp fall of 2.7% in October. December drop “is explained by the decrease in consumption of food products and manufactured goods (-1.7%)”, according to the Institute. Purchases of food products fell for the seventh consecutive month, and over the whole of the fourth quarter, they fell back by 2.8%. This tumble is explained by the two-digit inflation that has plagued food products for several months.
Energy prices have also been rising sharply for months, but in December the energy consumption of French households still rose by 0.7%, according to INSEE. “This new increase is mainly due to gas consumption, with electricity consumption remaining on a downward trend”comment the statisticians. “Over the whole of the fourth quarter of 2022, energy consumption fell by 5.5%, in line with a very mild autumn and no doubt also with energy sobriety efforts” requested by the government in September due to the risk of shortages.