Who are the French most affected by inflation?

Who are the French most affected by inflation?

(Photo illustration by Christopher Furlong/Getty Images)

(Photo illustration by Christopher Furlong/Getty Images)

Place of life, type of habitat, age… These criteria play a role in the impact of inflation on the portfolios of the French.

+5.9% annual, and in particular +22.7% annual energy in August, and +7.9% power. Inflation continues to wreak havoc in France, and impacts purchasing power, forcing the Government to take out the checkbook to limit the consequences, with the fuel discount, the energy rate shield or the transport surcharge.

If inflation affects various sectors indistinctly, the French are not affected in the same way depending on their situation. “The prices of all goods and services do not evolve in the same way. In fact, each household has its own inflation, depending on its consumption structure”, explains to France Info Mathieu Plane, economist at the ‘OFCE and specialist in purchasing power problems.

The rural population more affected than the citizen

Among the factors involved, the place of life, which affects the expenditure items and therefore the consequences of inflation. According to INSEE, rural dwellers spend a higher-than-average share of their income on fuel and energy bills: 12% versus 7% for a household in a big city and only 6% for a household in the Paris conurbation., for instance.

However, inflation especially affected energy and fuels, with an annual +22.7% in August and +28.7% respectively, affecting more the inhabitants of rural areas than those of cities in their budget. In April, according to INSEE, households in rural areas suffered an average inflation of 5.9% for a year, compared to only 4% of the inhabitants of the Paris conurbation (4%).

The inhabitants of Hauts-de-France are the most affected

By the same logic, the inhabitants of Hauts-de-France are the most affected by inflation, explains INSEE. In question, gas-heated homes and longer-than-average commutes between home and work, often by car.

The lowest 10% most affected

Another factor that plays a role is income. According to an INSEE study, which, however, dates from 2017, it is the most modest that dedicate most of their income to expenses related to energy and fuel.

According to this study, energy bills represented 6% of the expenses of the 10% of the most precarious households, and fuels 4%. Expenditures that represented respectively only 4 and 3% of the expenses of the richest households, and 5% of the expenses of middle-class households. The especially significant rise in prices in these two sectors therefore had a greater impact on the budgets of the more modest ones.

The impact of rising food prices

Another item of spending that has been particularly impacted by inflation in recent months is food. In one year, food prices have risen more than 7%. Here too, the most modest are the most affected. Even according to this same INSEE study, the poorest 10% of households spend an average of 19% of their expenses on food purchases, compared to 18% of the middle class and 15% of the 10% of the poorest households. rich.

The impact of inflation according to income is such that in April, the inflation of the lowest 10% was thus 0.4 points higher than the national average, according to a study by INSEE. On the contrary, the richest registered an inflation rate below the average (-0.1 points).

The older we get, the more impact inflation has

The most modest are the most affected since inflation has a greater impact on discount stores. The proof is: inflation reached 8.66% in August in supermarkets such as Aldi or Lidl compared to 7.70% in hypermarkets. In question, too-tight margins at discount stores to absorb price increases. The same is true on the private label side, where prices increased by 10.67%.

Age also influences the impact of inflation, says INSEE. In question, very different expenses as one gets older. Those over 75 years of age dedicated 8% of their spending to the energy bill before the crisis, compared to 3-6% of the rest of the population. The same happens with food, an expense whose participation increases with age: it represents 23% of the expenses of those over 75 years of age, compared to 11% of those under 25 years of age. A sector where prices have jumped more than 7% in a year. Also according to the INSEE study published last June, in April inflation was an average of 4% per year for those under 30 years of age, and jumped to 5.7% for those over 75.

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