2024-01-01 09:38:09
The year 2023, with the surge in inflation, will have been a difficult year for the French. But according to forecast figures, the year 2024 should be more lenient in terms of purchasing power with inflation expected to slow down significantly.
After a difficult year in 2023, 2024 should be significantly more favorable for the purchasing power of the French. First, there are still income increases in the pipeline, which will at least maintain purchasing power. Salaries will continue their momentum in 2022 and 2023 with increases of 4 to 5% including bonuses, and will now increase less quickly than inflation, which is slowing down significantly, to less than 2.5% per year from the spring.
As a result, the French will regain almost 1% of purchasing power in the first half of 2024. Or as much as they lost in the first half of 2024 according to INSEE.
On essential daily products and in particular food, hygiene and beauty products, and even clothing, few declines, but also few strong increases. On energy, the news is good on oil, less good on gas and electricity, with bills increasing by 6 to 10% due to taxes and transport costs.
Bad news also for smokers since the package will increase to one euro.
All those who send postcards, registered letters and Colissimo will see prices increase sharply between 5 and 11%.
What’s new with taxes?
On the tax front, the time is no longer for major reforms. After withholding tax in 2020, the revision of income tax brackets in 2021, the elimination of housing tax between 2018 and 2023, the 2024 vintage appears very wise.
As is generally the case, the government has decided to modify the income tax (IR) scale applicable to 2023 income to take into account price developments. The different thresholds will all be increased by 4.8%.
According to a study by the Institute of Public Policies (IPP), French people liable for IR will benefit slightly in 2024, except the wealthiest because of the maintenance of the scale of the exceptional contribution on high incomes. The property tax will increase, but much less than in 2023.
MaPrimeRénov’ and the zero-rate loan reviewed
Beyond everyday life, there are the major expenses that a family must incur. What is changing in terms of aid and subsidies? The big news is the launch of the system to buy an electric car at 100 euros per month for the most modest, while the ecological bonus for the purchase of a vehicle for the most well-off households should be reduced.
The State is also reviewing the conditions of MaPrimeRénov’. The system is expanded by around 1.6 billion, but now favors large-scale renovations involving several projects (wall insulation, changing windows and heating methods for example), and primarily helps the most modest, particularly for install heat pumps.
The scope of the zero-interest loan is also ultimately restricted. It will only be possible to buy a new apartment and only in tense areas, no more individual houses.
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