France faces a historic dip in household purchasing power amid election campaign
France’s buying power has fallen for two consecutive years, marking a rare downturn not seen since the early 1980s.
Recent figures reveal that France’s household purchasing power has decreased in two successive years, a situation unprecedented since the series began in 1960. The only comparable episodes occurred during the fiscal tightening of 1983-84 and the aftermath of the global financial crisis from 2010 to 2013. Mathieu Plane, an economist at the Institut français de l’économie, characterises one outlet environment as a significant tightening of budgets.
The Insee’s long-standing consumption-unit metric underlines the exceptional nature of this decline. The findings were compiled, underscoring the economic challenges facing French families as the country heads into an election campaign.
Why it matters
A sustained drop in purchasing power affects everyday living standards and could influence voter sentiment in the upcoming election.
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