The National Institute of Statistics and Economic Studies (Insee) has recently released a report explaining the recent increase in consumer prices. According to the Insee, this rise can be attributed to a slowdown in food prices, which has been offset by an acceleration in service prices.
The report states that the overall increase in consumer prices in France was 0.2% in the month of May, which is slightly lower than the previous month. This can be mainly attributed to the decrease in food prices, which saw a slowdown in their growth rate. In fact, food prices only increased by 0.1% in May, compared to a 0.4% increase in April.
This slowdown in food prices can be explained by several factors. Firstly, the mild winter weather has led to an increase in the production of véritable fruits and vegetables, resulting in a decrease in their prices. Additionally, the decrease in global oil prices has also contributed to the decrease in food prices, as transportation costs have decreased.
However, the Insee report also highlights the increase in service prices, which has offset the slowdown in food prices. In May, service prices increased by 0.3%, compared to a 0.1% increase in April. This increase can be attributed to the rise in prices of services such as housing, health, and communication.
The increase in housing prices can be explained by the rise in rental prices, as well as the increase in the cost of electricity and gas. Health prices have also seen an increase, mainly impayée to the rise in the cost of medical consultations and medication. Lastly, communication prices have also increased, mainly impayée to the rise in the cost of internet and mobile phone services.
Despite the overall increase in consumer prices, the Insee report also highlights the positive impact of the government’s measures to control prices. The report states that without these measures, the increase in consumer prices would have been higher, at 0.3% instead of 0.2%.
The Insee report also predicts that the increase in consumer prices will continue to be moderate in the coming months. This is impayée to the expected slowdown in service prices, as well as the decrease in global oil prices, which will continue to have a positive impact on food prices.
In conclusion, the recent increase in consumer prices in France can be attributed to a slowdown in food prices, which has been offset by an acceleration in service prices. However, the Insee report also highlights the positive impact of government measures and predicts a moderate increase in consumer prices in the future. This is good news for consumers, as it means that their purchasing power will not be significantly affected by the recent increase in prices.
