Inflation: Which non-food items have increased in price the most?
Gasoline, electricity, groceries and now… coffee makers. Inflation, which reached 5.8% over a year in June, according to INSEE’s preliminary estimate, is spreading across the economy.
The INSEE consumer price index in June showed electricity, gas and other fuel prices up 28.5% over a year and food and non-alcoholic beverage prices up 6.3%, two sectors driving inflation. Pasta, frozen meat, flour and oils are most affected.
Small household appliances particularly affected
But consumers now have to contend with rising prices for household and cleaning products. According to the consumer price index published by INSEE, between June 2021 and June 2022, the price of small household appliances increased by 7%. In particular, electric coffee machines and kettles, the price of which has increased by 17.2% in one year, but also toasters by 13.7%.
Irons increased by 5.9% and other small appliances such as coffee grinders or juicers recorded a price increase of 6.1%. Refrigerators and freezers increased by 8%.
“The increase in the price of small household appliances is part of the global disorganization of maritime transport and the passing on of rising production costs to prices. These products are also affected by a shortage of electronic components,” analyzes Sébastien Faivre, Head of Consumer Prices at INSEE. The increase in the minimum wage “could also have an impact on the prices of these products”.
Interior badly damaged
On the home maintenance side, outdoor furniture prices are also up 11.6% and home furnishings are up 7.5%. This can be partly explained by the increase in raw material prices and the increase in maritime transport costs combined with the difficulty of container transport, explains Sébastien Faivre. At the end of 2021, the furniture giant Ikea announced a price increase for this reason.
Finally, small non-motorized tools (saws, hammers, screwdrivers, etc.) increased by 10.5% and certain so-called “non-durable” household items such as mops, sponges, filters, tablecloths and napkins or paper towels saw their prices increase by 8%.
paper crisis
Certain goods, defined by INSEE as leisure or cultural goods, have also experienced significant price increases. For example, the price of scanners and printers rose by 9.8% in one year, and that of pet products by 7.3%.
In addition, the paper crisis is affecting stationery prices (notepads, diaries, envelopes, notebooks, etc.), which have risen by 10% in one year. “The paper industry uses quite a lot of energy, especially for paper drying, which must have had an impact on prices,” notes Sébastien Faivre. Newspaper and magazine prices increased by 5.4%. After all, auto sales rose 5.1% in one year, less than inflation.
Health and tobacco spared
While most of the French’s spending, with the exception of energy, is registering a price increase close to inflation at 6%, on the contrary, three sectors appear to be rather spared. The consumer price index for tobacco and health, two regulated sectors, was almost stable for over a year.
The clothing and footwear sector saw prices rise just 0.6% yoy in June. “This involves quite substantial balances in terms of products and volumes. Perhaps we will find more momentum from September,” explains Sébastien Faivre. “As far as clothing is concerned, we are also comparing it to a situation in 2021 when we were released from detention. There were health restrictions when accessing malls, so it’s a pretty specific comparison,” the latter qualifies.
The price increase will not slow down: According to Economics Minister Bruno Le Maire, inflation will peak from mid-2023. In the meantime, the government hopes to lighten the bill for the French with its package of purchasing power laws.
