Inflation stagnates in October thanks to our energy bills: have gas and electricity prices really fallen?

2023-10-31 15:01:00

This is a trend that has consequences on your purchasing power. Year-on-year inflation rose just 0.36% this month. This means that all prices are almost stable compared to prices a year ago. If we go into detail, it is especially energy prices which have fallen enormously compared to October 2022. What does this reduction correspond to, what is it due to and will it last?

If we look at the curve which shows the price of gas and electricity over the last three years, we can see the price evolution of these two energies which evolve in parallel. Two elements should be noted: a stabilization in recent months and above all, very visible, the peak caused by the war in Ukraine.

From 20 to 300 euros per megawatt hour

Here is the explanation with wholesale gas prices. “We went from 20 euros per megawatt hour to more than 300 euros per megawatt hour in the heart of this gas crisis. Now, we have gone down to 50 euros per megawatt hour. We are still two and a half times more expensive in terms of gas than we were before this crisis in Ukraine”says Damien Ernst, specialist in energy issues at the University of Liège.

The energy market is therefore temporarily calm, but prices remain high. So how are you living with your energy bills today? Charlotte thanks her parents who taught her to be thrifty at a very young age. “For me, it holds because I’m very careful. If I wanted to consume to feel very hot, that wouldn’t work.”she admits.

Everyone saw the tidal wave of bills

Thanks to his solar panels and a decent salary, Frédéric withstood the shock of last year. “I think everyone has seen the tidal wave of bills. I really feel sorry for a lot of people.”

Lights on minimum, heating still not turned back on, Danielle saves as much as possible and is also worried. “I wonder when I will arrive at the pension, having worked a lot, how will I be able to live in 5 years”, she asks herself.

With lower prices today, energy is pushing inflation numbers down. It’s almost the only consumer product that has declined. Given that energy is the main cause of the increase in a whole series of products, food in particular, logic would dictate that they too should decrease or at least stop increasing.

gas electricity energy price inflation

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