5.2%. This is the new record inflation in France, according to data published this Tuesday, May 31st by INSEE. With this number, the price increase in the last twelve months is at the highest level since September 1985. However, when asked this morning, Bruno Le Maire wanted to calm down. In fact, the economy minister is sticking to his growth forecast of 4% in 2022, a number that leaves room for a recession, a risk he “doesn’t believe”.
But with this record, the pressure on this government, which has made purchasing power one of its priorities, grows a little more. This will also be the subject of the first texts presented to the future National Assembly, including in particular the maintenance of the fuel discount or the creation of a meal voucher. The opposition is on the rise and is making its own proposals every day. Mélenchon wants prices on basic necessities locked and the minimum wage raised to 1,500 euros, Marine Le Pen proposes a reduction in VAT from 20% to 5.5% on energy products or even zero VAT on a hundred basic necessities.
However, France performs better than its neighbors. In Germany, the consumer price index reached a new record of 7.9% over a year in May, the highest level since the country’s reunification in 1990. The record was also broken in the United Kingdom, where price increases reached a 40-year high . with 9% over a year. In Turkey, the inflationary observation related to the fall of the Turkish lira is particularly palpable.
In this context, the battle for raw materials is raging. The timber example is significant, China is buying more and more French timber and these colossal exports are worrying the National Timber Union. Above all, she fears for the supply of French sawmills and processors.
So should we be concerned about France’s inflation figures released yesterday? What measures should be taken for purchasing power? How can you explain that inflation is more moderate in France than elsewhere? Is the situation in the timber sector dangerous?
-Philippe Dessertine, Director of the Institute for High Finance
– Emmanuel Duteil, Editor-in-Chief – Usine Nouvelle
– Fanny Guinochet, Specialist journalist for economic and social issues – La tribune
– Sylvie Mately, Economist – Deputy Director of IRIS