Inflation in France crossed 5% over one year in May, according to the provisional estimate published by INSEE on Tuesday 31 May. The 5% inflation mark, exceeded mainly due to higher energy prices, had not been reached since September 1985. In April, one-year inflation was at 4.8%, already the highest in nearly thirty-seven years.
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In addition to energy prices, which show an increase of 28% compared to March 2021, the acceleration of inflation is also due to an increase in the prices of services, food and manufactured goods, even if it is less sustained than in April. Fresh produce, for example, was up 1.5% compared to March 2021, compared to 7.1% last month.
GDP revised down
The harmonized consumer price index (HICP), which serves as a basis for comparison at European level, is 5.8% over one year, after 5.4% in April.
→ READ. Euro zone: inflation hits a new record in May at 8.1% over one year
INSEE also indicated on Tuesday that gross domestic product (GDP) had finally contracted by 0.2% in the first quarter, revising downwards its first estimate, published at the end of April, of growth of 0%.
The decline in household consumption is even more marked than previously estimated by the National Institute of Statistics, as household purchasing power has fallen “clearly” 1.9% in the first quarter, weighed down by inflation.