Inflation is raging in France to the point of reaching an increase of 6.1%. A record since July 1985, yet France is doing quite well compared to its European neighbors such as Estonia, Latvia, etc.
INSEE has just confirmed this: in France, consumer prices, which include both food and energy, the amount of rent or the cost of transport, increased by 6.1% year-on-year. Although this is a record since July 1985, this essential indicator for measuring inflation also allows us to be compared to other European consumers. And when we look more closely, the inflationary situation of the French proves to be the most enviable…
A full tank of gas that costs more, packets of pasta but also more expensive frozen meat… The rise in the prices of our daily newspaper has not escaped anyone, if only by reading the press for which inflation is one of the key subjects of this summer 2022. With energy prices in increase of 28.5% in July over one year, but also a more expensive food of 6.8% as well as an increase in the cost of transport of 17.4%, the French face an atypical situation.
An increase in the monthly budget of 90 euros
At the end of May, the magazine 60 million consumers revealed in its inflation observatory, drawn up alongside the firm NielsenIQ, that the rise in prices – whether for energy, fuel and food, already forces us to increase our monthly budget by 90 euros.
However, if it is a real financial effort for many French households, the difficulties are even tougher for our European neighbors. In the euro zone where inflation stands at 8.9% in July over one year, with energy prices soaring by 39.7% and food prices inflated by 9.8%, France recorded one of the lowest rates, with Malta (+6.5 %). Conversely, the highest levels concern the Baltic countries, and specifically Estonia at +22.7%, Latvia at +21% and Lithuania at +20.8%.
Record inflation for Germany since its reunification
The situation is exceptional: according to the Süddeutsche Zeitung, one of the main German newspapers, reunified Germany has never experienced such a level of inflation, rated at 7.5%. Scandinavia too, which we usually take as an example, is not immune to this overheating: 8.68% in Sweden, 7.79% in Finland and 6.79% in Norway (in June 2022).
Unsurprisingly, the rise in energy prices explains the additional cost of living in all European countries. In Belgium, for example, where inflation is higher than in France, at 9.62% over one year, the increase in electricity and fuel prices reached 49.11%, according to the statistics portal Statbel . “The main price increases recorded in July concern air tickets, hotel rooms, fire insurance, meat, electricity, dairy products, heating oil, the purchase of vehicles and road tax” indicates the platform. At +9.24%, the increase in food prices is also fueling inflation.
Very expensive food
In Germany (+14.8%), but also in the southern countries of the euro zone, consumers are clearly weighed down by a much more expensive shopping cart. The Spaniards are the first concerned. While the country of Cervantes records a 10.8% increase in consumer prices in July – a record since September 1984 – meat, bread and cereals, dairy products, eggs and fish are subject to the strongest price increases.
Food is indeed more expensive, +13.5% over one year. The Spaniards have not experienced such an increase in their food basket since 1994. A salty note which is added to that of the energy budget, whose prices have exploded by more than 50% since the beginning of the year . A more unexpected factor in Spanish inflation: the rise in the cost of holidays, with tourist packages which are more expensive by +13%, just like accommodation (+3.5%).
Italians have to spend 564 euros more on their food budget
On the other side of the Alps, we are bearing the brunt of the repercussions of the drought. The poorer harvests lead to sharp price increases for vegetables (+12.2%) and fruit (+8.8%). In Italy, food prices have soared by 10% compared to 2021, with a basket of pasta, rice and bread costing 115 euros more. This year, Italians have to spend 564 euros more on their food budget. Climatic disorders are not the only reason for this rise in prices. It is also the result of additional costs incurred by farmers. Fertilizers are 170% more expensive while animal feed prices have increased by 90%.
In Portugal, where inflation reached 9.1%, the price of fish increased the most, by 18.16% between February and August 2022. During this period, the price of a food basket increased by nearly 13%, according to calculations made each week by Deco Proteste, a major Portuguese consumer association.
“The problem is historical: Portugal is heavily dependent on external markets to guarantee the supply of cereals necessary for its internal consumption. Currently, these represent only 3.5% of national agricultural production – mainly maize (56 %), wheat (19%) and rice (16%)” she explains. And to add “and if at the beginning of the 90s the self-sufficiency in cereals was around 50%, currently the value does not exceed 19.4%, one of the lowest percentages in the world and which obliges the country to import regarding 80% of the cereals it consumes”.
Outside the euro zone, we are not faring any better. In the United Kingdom, experts are preparing for the return of the British from vacation by anticipating inflation estimated at 12% for the month of October. Currently, it stands at 9.4%, a level not reached for 40 years. We told you at the end of July regarding this trend around the butter House which His Majesty’s subjects attempt.
Anti-theft devices have even been added to Lurpak brand butter trays, the price of which has soared by 30% in stores Morrisons. In British supermarkets, the forecasts for rising food prices are shaking: +15% for this summer, +20% at the start of 2023. According to calculations by the firm Kantar, between mid-April and in mid-July, butter prices soared 20.3%, milk 17.8%, burger meat 13%.
Inflation present abroad
Finally, let’s add that beyond European borders, there is no escaping the inflationary trend. In Brazil, food prices soared 17.5% in July year on year. Brazilian newspaper Hora Do Povo reports big increases on staples like papaye (99.39%), watermelon (81.60%), onion (75.15%), strawberry (73.86%) or ground coffee (58.12%).
Let’s complete this panel with an essential look at the United States. Because if inflation is down in July from 9.1% to 8.5% thanks to the significant drop in the price of gasoline (-7.7%) and plane tickets (-7 .8%), the caddy of the Americans continues to cost more. Food prices rose by 13.1%, knowing that cereals and bakery products posted the highest price increase (+15%).
