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Purchasing power variation in France 2007-2019

In 2016, after few years of sharp decline, the purchasing power in France reached 1.9 percent. In 2013, the purchasing power in France experienced its strongest decline since 2007. With a decrease of more than -1.2 percent compared to the previous year, French purchasing power reached a level lower than the one attained in 2008 during the economic crisis.

The decline of French purchasing power

The purchasing power, which is the amount of goods or services that you can buy with it, is linked with the inflation rate and the disposable income of households. In France, the inflation rate peaked in 2008 with 2.8 percent. Since then, and after a decline from 2013 to 2018, the inflation rate has been slightly increasing in France, reaching 1.8 percent in 2018, but decreased since then. It amounted to 0.5 percent in 2020 This had a strong impact on the purchasing power of French households since the average annual household disposable income in France remained stable since 2005.

An important issue in the French public debate

The purchasing power has always been a sensitive topic within French public debate. In 2019, during the Great National Debate launched after the Yellow Vests movement, the purchasing power was mentioned as the priority issue that should be addressed during the debate. Most of the French public perceive the economic policy pursued by Emmanuel Macron and his Prime Minister, as having a negative impact on their purchasing power.

Evolution of the purchasing power in France from 2007 to 2019

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Source

Release date

June 2020

Region

France

Survey time period

2007 to 2019

Special properties

Households and individual companies

Supplementary notes

The source adds the following information: "Base 2014".

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Statistics on "Inflation and consumer price indexes in France"

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