Inflation: With a price increase of 6.1%, France is better off than its European neighbors?

INSEE has just confirmed this: in France, consumer prices, which include both food and energy, are the level of rent or transport costs, increased by 6.1% compared to the previous year. Although this is a record since July 1985, this essential indicator for measuring inflation also allows us to compare ourselves with other European consumers. And if we look more closely, the inflationary situation of the French turns out to be the most enviable…

A full tank of petrol that costs more, pasta, but also more expensive frozen meat… The increase in the prices of our daily life has not escaped anyone, even if only by reading the press, for inflation is one of the key issues this summer of 2022. With a With energy prices up 28.5% in July over a year, but also food prices up 6.8% and transport costs up 17.4%, the French find themselves in an atypical situation.

An increase of the monthly budget by 90 euros

At the end of May, the magazine 60 million consumers revealed in its inflation observatory, which it created together with the company NielsenIQ, that the price increase – whether for energy, fuel or food – is already forcing us to increase our monthly budget by 90 euros.

However, if it is a real financial drain for many French households, the difficulties for our European neighbors are even greater. In the Eurozone, where inflation is at 8.9% In July over a year, France recorded one of the lowest rates, with a 39.7% increase in energy prices and a 9.8% increase in food prices, together with Malta (+6.5%). On the other hand, the highest values ​​concern the Baltic countries, namely Estonia with +22.7%, Latvia with +21% and Lithuania with +20.8%.

Record inflation for Germany since reunification

The situation is extraordinary: according to the Süddeutsche Zeitung, one of the most important German newspapers, reunified Germany has never experienced such inflation, rated at 7.5%. Scandinavia, which we usually take as an example, is not immune to this overheating either: 8.68% in Sweden, 7.79% in Finland and 6.79% in Norway (in June 2022).

Not surprisingly, the increase in energy prices explains the additional cost of living in all European countries. For example, in Belgium, where inflation is 9.62% over a year, higher than in France, the increase in electricity and fuel prices reached 49.11%, according to statistics portal Statbel. “The main price increases recorded in July concern airline tickets, hotel rooms, fire insurance, meat, electricity, dairy products, heating oil, the purchase of vehicles and road tax,” the platform reads. The increase in food prices at +9.24% is also fueling inflation.

Very expensive food

In Germany (+14.8%), but also in the countries in the south of the euro zone, consumers are clearly burdened by a significantly more expensive shopping trolley. The Spaniards are the first to be affected. While the Cervantes region recorded a 10.8% increase in consumer prices in July – a record since September 1984 – meat, bread and cereals, dairy products, eggs and fish saw the largest price increases.

Groceries are indeed more expensive, +13.5% over a year. Not since 1994 have Spaniards seen such an increase in their food basket. A salty note that adds to that of the energy budget, whose prices have exploded by more than 50% since the beginning of the year. An unexpected factor in Spanish inflation: the rise in holiday costs, with tourist packages being +13% more expensive, as well as accommodation (+3.5%).

Italians have to spend 564 euros more on their grocery budget

Beyond the Alps, we bear the consequences of the drought most severely. The poor harvests lead to strong price increases for vegetables (+12.2%) and fruit (+8.8%). In Italy, food prices are up 10% compared to 2021, with a basket of pasta, rice and bread costing €115 more. This year, Italians have to spend 564 euros more on their food budget. Climatic disturbances are not the only reason for this price increase. It is also the result of additional costs incurred by farmers. Fertilizers are 170% more expensive, while animal feed prices are up 90%.

In Portugal, where inflation reached 9.1%, the price of fish rose the most between February and August 2022, by 18.16%. During that period, the price of a grocery basket rose by almost 13%, according to weekly calculations by Deco Proteste, a major Portuguese consumer association.

“The problem is historical: Portugal is heavily dependent on external markets to ensure the supply of grain needed for internal consumption. Currently, these represent only 3.5% of national agricultural production – mainly corn (56%), wheat (19%) and rice (16%),” she explains. And to add: “And if in the early 90s self-sufficiency Whereas with grain was about 50%, the figure currently does not exceed 19.4%, one of the lowest percentages in the world, forcing the country to import about 80% of the grain it consumes.

We are no better off outside the eurozone. In the UK, pundits are preparing for the return of Britons from holiday by forecasting inflation at an estimated 12% for the month of October. For now, it is 9.4%, a level not seen in 40 years. We told you about this trend around the at the end of July butter house what His Majesty’s subjects are attempting.

The Lurpak brand butter dishes, the price of which has risen by 30% in stores, have even been equipped with anti-theft devices Morrisons. Forecasts for rising food prices in UK supermarkets are shaky: +15% for this summer, +20% in early 2023. According to Kantar calculations, butter prices soared 20.3% between mid-April and mid-July, milk 17.8% , burger meat 13%.

Inflation abroad present

Finally, let us add that there is no escaping the inflationary trend beyond Europe’s borders. In Brazil, food prices rose 17.5% year-on-year in July. Brazilian newspaper Hora Do Povo reports big increases in staples like pApaye (99.39%), watermelon (81.60%), onion (75.15%), strawberry (73.86%) or ground coffee (58.12%).

Let’s wrap up this panel with an essential look at the United States. After all, if inflation fell from 9.1% to 8.5% in July thanks to the sharp fall in the price of petrol (-7.7%) and plane tickets (-7.8%), the American Caddy will continue to cost more. Grocery prices increased by 13.1%, with cereals and bakery products being known to see the highest price increases (+15%).