The French economy should continue to show resilience in the first quarter, with expected growth of 0.1% in a context still marked by inflationary tensions, the Banque de France said on Wednesday, which plans to raise its annual growth forecast.
“Growth in the first quarter is a bit better than what was expected at the end of last year,” said Olivier Garnier, general director of statistics, studies and international affairs at the Banque de France, citing in particular an easing of gas and the electricity. prices.
Against this more reassuring outlook, the Banque de France intends to revise its growth forecast slightly higher, currently 0.3% for all of 2023, during the presentation of its annual projections on March 20, it added during a press conference. on Wednesday. While inflation has reached levels not seen since the 1980s, price developments give rise to less celebration.
sky high food products
On raw materials, companies continued to see a significant slowdown in price increases in February, which would continue into March, the Banque de France detailed, after surveying some 8,500 companies between February 24 and March 3.
According to the industrialists consulted, price increases have returned to a level “close to that observed before the Covid crisis”. The trend is similar, although less strong, for finished products.
The food industry is an exception. While in industry the proportion of businessmen who declare that they have raised their share price decreases, in February it increases in this sector. It should rise further in March, with more than 40% of respondents expecting prices to rise.
According to INSEE, inflation picked up to 6.2% year-on-year in February, but food products experienced a double-digit rise (14.5%), displacing energy as the main driver of prices and directly affecting the pocket of the homes.
Source: BFM TV
