Pasta, frozen food, oil or flour are no longer the only products whose price is constantly increasing! Retail prices are all on the rise and the situation is expected to continue in 2022, reducing household living expenses by more than 1%.
After energy or fuels, food prices will rise. In supermarkets, we are witnessing spectacular increases which draw towards 5% according to the data analysis company IRI, quoted by BFM TV. Above all, beyond pasta (+15%), frozen foods (+11%) or oils (+9%), the rise in prices has become widespread. And are the first prices with a blaze of 6.6% of their price – against 3.3% for private labels – which are the most heavily affected. By domino effect, it is also the most modest households that suffer the most from this situation.
In view of the increase in agricultural production prices, we must in any case expect an increase in food prices. They could grow by 3.9% by the end of the year, after a rise of 3.3% between December 2021 and April 2022, estimates Stephane Colliac, economist France at BNP Paribas, in The echoes. The expert fears an inflation peak for the start of the school year in September with significant consequences on the budget of the most modest households. The Banque de France estimates inflation at 3.7% in its most optimistic scenario. In its most pessimistic projections, it could rise to 4.4%.
Remaining living and level of consumption
the stay alivenamely the monthly household budget once constrained expenses such as housing, energy or food withdrawn, will be hardest hit. It could fall by 1.3% according to our calculationsexplains Stphane Colliac in The echoes. The most modest will be even more affected, because the share of pre-committed expenses weighs more heavily on their budget. One of the consequences of this situation could be a slowdown in the level of consumption.
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In 2021, Secours Catholique indicates that half of the people it welcomes have a living allowance of less than 9 euros per day, once these compulsory expenses have been deducted. Calculating this remaining living allows you to anticipate the end of the month in the red… and therefore to avoid the costs generated by an overdraft.
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How to calculate your remaining living?
There is no standardized calculation of the rest to live. Here is the method used by the Crsus federation to support financially fragile households. The remainder to live is the result of the following formula:
- Total resources – total fixed charges – total credits
Resources: wages, pensions; allowances (unemployment, RSA, etc.); movable income; real estate income; pensions and family benefits, scholarships, aid, etc.; other resources (reimbursements, bonuses…); family aids.
Fixed charges: rent / charges; electricity / water / heating; telecommunications (telephone / mobile / internet / TV); income taxes; housing tax; property tax; Home Insurance; car insurance; mutual; transportation; schooling / canteen / child care; alimony.
Credits: real estate loans, credit insurance; consumer credit.
The Crsus federation does not take into account current and occasional expenses (because they are more volatile) such as food, hygiene, clothing, precautionary savings or leisure. The illustration that this calculation varies since BNP Paribas economist Stphane Colliac explains it in his interview with Echoes integrate food expenditure.