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The Government has made its calculations, the French will not lose purchasing power this year

The French will not lose purchasing power this year, according to the government. Because if inflation reaches an extraordinary level, at 5.3%, the executive believes that he has neutralized its effects.

Although the review of the Budget has begun in the Assembly, Bercy’s services have taken stock: with the measures of the Executive, the purchasing power of the French should be maintained this year and even increase slightly next year.

The tariff shield and the fuel discount would have absorbed more than 2 points of inflation. As for the measures in favor of purchasing power voted this summer, such as the rise in the index point, the revaluation of pensions, the exceptional energy check at the end of the year, they should cushion inflation by more than one point.

Towards an increase in purchasing power in 2023?

As a result, all these expenses reduced the price increase by 3.5 points. Combined with rising wages, purchasing power should not decline this year. And it would even rise next year, 0.9%, according to Bercy. This is almost double the expected growth in 2023.

The tariff shield would play an important role since this measure alone would neutralize 3.5 points of inflation. The executive also puts 15,000 million euros on the table to support households with the abolition of the quota, the tripling of the Macron bonus and a new revaluation of social benefits.

In total, state support would weigh 4.5 points of purchasing power. And combined with a further increase in wages, households would have incomes next year above inflation, which is expected at 4.2%.

Author: Thomas Sasportas with Nina Le Clerre
Source: BFM TV

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