Even though it has slowed down, inflation is still hitting the French in their wallets. In September, the increase in consumer prices reached 5.6% over one year, compared to 5.9% in August, according to provisional data from INSEE. A slight decrease which, however, is not enough to stem the perceived drop in purchasing power. Because according to the annual barometer of the online bank comparator Panorabanques, nearly 6 out of 10 consumers have lost their financial capacity since the start of 2023. The study is based on a survey carried out by Poll
According to Panorabanques, the monthly financial loss due to inflation has increased again this year. 7% higher than the previous one, it reaches 120 euros on average (compared to 112€ in 2022). And for 16% of respondents, it even exceeds 200 euros. A proportion which rises to 20% among those who earn less than 1,500 euros per month, while it was only 10% last year. Three expenditure items weigh particularly heavily in the loss of purchasing power. First the rise in food prices, with 85% of French people impacted. Closely followed by the increase in energy prices (70%, compared to 63% in 2022) and finally the price of fuel (64%).
To cope, consumers are adapting. The vast majority of them choose to tighten their belts and limit their purchases. “82% of French people are reducing their spending to fight inflation,” notes the barometer. Only a third of respondents say they are dipping into their savings to absorb the impact of inflation. Relatively effective financial strategies since the percentage of French people overdrafting at least once a year remained the same as last year: 47%. The average overdraft amount is down 3%, from €239 to €232.
In detail, 57% of French people have seen their purchasing power melt while 40% believe that it has remained relatively stable. Only 4% believe they have increasing financial capabilities. If “a slight improvement is to be noted compared to 2022 (61% of consumers then declared having lost purchasing power, Editor’s note), inflation has an impact on the purchasing power of the French in the long term,” says the report. . For 60% of French people, the rise in consumer prices has had a “huge” or “a lot” impact on purchasing power. The categories hardest hit are those aged 50-65, single parents and workers earning less than €1,500 per month. Especially since 43% of the latter say they are enormously impacted by inflation, compared to 39% in 2022.