Inflation is raging in France to the point of reaching an increase of 6.1%. A record since July 1985, but France is doing quite well compared to its European neighbors like Estonia, Latvia, etc.
The INSEE has just confirmed it: in France, consumer prices, which include both food and energy, the amount of rent or the cost of transport, increased 6.1% year-on-year. Although it is a record since July 1985, this essential indicator to measure inflation also allows us to compare ourselves with other European consumers. And when we look more closely, the inflationary situation of the French turns out to be the most enviable…
A full tank of gasoline that costs more, packets of pasta but also more expensive frozen meat… The rise in prices in our day-to-day life is not lost on anyone, even if only reading the press for which inflation is one of the the key issues. this summer of 2022. With energy prices rising by 28.5% in July in one year, but also more expensive food by 6.8% as well as an increase in transport costs of 17.4%, the French face an atypical situation.
An increase in the monthly budget of 90 euros
At the end of May, the magazine 60 million consumers revealed in its inflation observatory, prepared together with the firm NielsenIQ, that the rise in prices -be it energy, fuel and food- is already forcing us to increase our monthly budget in 90 euros.
However, if it is a real economic effort for many French households, the difficulties are even harder for our European neighbors. In the euro zone where inflation stands at 8.9% in July for a year, with energy prices increasing by 39.7% and food prices inflated by 9.8%, France recorded one of the lowest rates, with Malta (+6.5%). On the contrary, the highest levels correspond to the Baltic countries, and specifically to Estonia with +22.7%, Latvia with +21% and Lithuania with +20.8%.
Record inflation for Germany since its reunification
The situation is exceptional: according to the Süddeutsche Zeitung, one of the main German newspapers, the reunified Germany had never experienced such a level of inflation, rated at 7.5%. Scandinavia, which we usually take as an example, is also no stranger to this overheating: 8.68% in Sweden, 7.79% in Finland and 6.79% in Norway (in June 2022).
Unsurprisingly, rising energy prices explain the additional cost of living in all European countries. In Belgium, for example, where inflation is higher than that of France, 9.62% in one year, the increase in electricity and fuel prices reached 49.11%, according to the Statbel statistics portal. “The main price increases recorded in July relate to airline tickets, hotel rooms, fire insurance, meat, electricity, dairy products, heating oil, vehicle purchases, and property tax. circulation”, indicates the platform. At +9.24%, rising food prices are also fueling inflation.
very expensive food
In Germany (+14.8%), but also in the southern countries of the euro zone, consumers are clearly weighed down by a much more expensive shopping basket. The Spanish are the first affected. While the country of Cervantes registers a rise in consumer prices of 10.8% in July – a record since September 1984 – meat, bread and cereals, dairy products, eggs and fish are the subjects of the increases stronger prices.
In fact, food is more expensive, +13.5% in one year. The Spanish have not experienced a similar increase in their food basket since 1994. A salty note that adds to that of the energy budget, whose prices have skyrocketed by more than 50% since the beginning of the year. A more unexpected factor in Spanish inflation: the rise in the cost of holidays, with tourist packages that are +13% more expensive, as is accommodation (+3.5%).
Italians have to spend 564 euros more on their food budget
Across the Alps, we are bearing the brunt of the repercussions of the drought. The poorer harvests lead to strong increases in the prices of vegetables (+12.2%) and fruits (+8.8%). In Italy, food prices have soared 10% compared to 2021, with a basket of pasta, rice and bread costing 115 euros more. This year, Italians have to spend 564 euros more on their food budget. The climatic disorders are not the only reason for this rise in prices. It is also the result of additional costs incurred by farmers. Fertilizers are 170% more expensive, while animal feed prices have increased by 90%.
In Portugal, where inflation reached 9.1%, the price of fish increased the most, by 18.16% between February and August 2022. During this period, the price of a shopping basket increased by almost one 13%, according to weekly calculations by Deco Protest, a major Portuguese consumer association.
“The problem is historical: Portugal depends heavily on external markets to guarantee the supply of cereals necessary for its internal consumption. Currently, these represent only 3.5% of national agricultural production, mainly corn (56%). , wheat (19%) and rice (16%)”, he explains. And to add “and if at the beginning of the 90s the self-sufficiency in cereals was around 50%, currently the value does not exceed 19.4%, one of the lowest percentages in the world and that forces the country to import about 80% of the cereals you eat.
Outside the euro zone, we are not doing any better. In the United Kingdom, experts are preparing for the return of the British vacations by anticipating an estimated inflation of 12% for the month of October. Currently, stands at 9.4%, a level not reached for 40 years. We told you at the end of July about this trend around the butter house that His Majesty’s subjects attempt.
Anti-theft devices have even been added to Lurpak-brand butter trays, which have skyrocketed in price by 30% in stores morrison. In British supermarkets, forecasts for rising food prices tremble: +15% for this summer, +20% at the beginning of 2023. According to calculations by the firm Kantar, between mid-April and mid-July, the prices of butter soared 20.3%, milk 17.8%, hamburger meat 13%.
Inflation present abroad
Finally, let us add that beyond the European borders, there is no escape from the inflationary trend. In Brazil, food prices soared 17.5% in July year over year. Brazilian newspaper Hora Do Povo reports large increases in basic products such as papaye (99.39%), watermelon (81.60%), onion (75.15%), strawberry (73.86%) or ground coffee (58.12%).
Let’s round out this panel with an essential look at the United States. Because if inflation falls in July from 9.1% to 8.5% thanks to the significant drop in the price of gasoline (-7.7%) and plane tickets (-7.8%), the caddy of Americans continues to cost more. Food prices increased by 13.1%, knowing that cereals and bakery products recorded the largest price increase (+15%).
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