While inflation continues to rise in France and has reached 4.5% since March, the World Bank believes that it is not about to fall. Worse, commodity and energy prices are expected to stay high until at least 2024.
A news that will not do good to the wallet. For several months, inflation has been increasing in France and even reached, in March 2022, 4.5% over one year, according to INSEE. As a result, the prices of heating, gasoline, but also consumer products have considerably increased for some, such as meat (5.23%), oil (2.96%), roasted coffee ( 2.88%), sugar (2.32%) or toilet paper (2.11%). A finding that does not really reassure the French, who are more than ever worried about their purchasing power, the result of an energy crisis linked in particular to the war in Ukraine. The latter has in fact “caused a major shock to commodity markets and changed the pattern of world trade, production and consumption”specifies the World Bank, relayed by CNews.
While a reversal is not expected before 2023, for a slight decline, the international financial institution believes that the horizon is short even until 2024after a 50% increase forecast for the price of energy in 2022. For agricultural products and metals, the increase could be around 20%. “However, commodity prices are expected to remain well above the average of the past five years, and in the event of a prolonged war or further sanctions against Russia, they could become higher and more volatile than currently expected. “warned the World Bank.
This food product that has increased
Not enough to reassure consumers, therefore. Because if social aid will be revalued, just like the minimum wage, from May 1, 2022, the trend will not be reversed immediately. So much so that some have revised their consumption downwards, especially with regard to food. While the “first price” products are acclaimed, the organic and the big brands are shunned. And tin cans, appreciated for their low price and long shelf life, are likely to soon be considered an out-of-reach product by some, when they would have increased by 4%, and this, because of the impact of the war in Ukraine on raw materials such as steel and aluminium.