In its surveys carried out in July, INSEE, which monitors the evolution of the prices of all products and all services offered to consumers, noted a further drop in inflation. The average year-over-year increase fell from 4.5% in June to 4.3% last month.
This observation means that prices on average are still well above readings taken a year ago, but that this slowdown in inflation is also due to certain products and services seeing their prices fall. And, at the risk of surprise, even for food products.
In the “oils” section, the decrease is notable except in olive-based products
This decline is especially noticeable in the “oils” department. With the notable exception of olive oil, which suffered a rise in prices linked to a drop in production in Spain due to climatic reasons), the rest of the oils (rapeseed, sunflower, peanut, etc.) today cost on average almost 4 % less than a year ago.
In addition, if we compare prices between April and July, vegetables have seen their average price fall by 4.5%. Especially since zucchini and tomatoes lower the average. However, over a year, the average price of vegetables shows a significant increase (+15%) due, in particular, to the significant increase in the price of potatoes. Finally, INSEE surveys, all regions and all businesses combined, show a drop of almost 2% in the price of fresh fish compared to April 2023.
Televisions cost 10% less than two years ago
It goes without saying that, in the whole of the shopping basket, these price reductions do not represent much. For its part, INSEE notes, in addition to daily purchases, more significant falls. They concern in particular garden furniture, vacuum cleaners and televisions.
Between April and July, average garden furniture store prices fell by 6.2%. The decline this summer is greater than in previous years. So, compared to July 2021, the price of sun loungers, garden tables and chairs seems to be very slightly lower. For vacuum cleaners and other cleaning devices, the price differences compared to July 2022 are more noticeable: -2.4%. An all the more appreciable decrease since their prices had already fallen in previous years.
In one year, the price of mobile phone plans has dropped an average of 14%
The same occurs with audiovisual equipment (televisions, radios, portable speakers) whose prices have fallen by 3.9% in one year after falling by more than 7% in the previous twelve months. So that over two years, the fall in prices exceeds 10%. Of course, you don’t buy a new TV every two years. But INSEE obviously takes this fact into account. The weight of the purchase of food in the calculation of inflation is 72 times greater than that of audiovisual equipment.
On the other hand, we can talk about an expense that weighs much more in the budget of the French than the renewal of the TV in the living room, it is the mobile phone bill. And it turns out that the packages as a whole have gone down. Almost 14% less in one year. This does not mean that everyone has benefited from this rate reduction. To take advantage of this, you have to compete.
Source: BFM TV
