Household consumption rebounds, inflation slows down - The Point

The French have resumed timidly their habits after the crisis of the sars coronavirus. Household consumption has rebounded significantly in the month of may com

Household consumption rebounds, inflation slows down - The Point

The French have resumed timidly their habits after the crisis of the sars coronavirus. Household consumption has rebounded significantly in the month of may compared to April, but remains below its level of February (- 7,2 %), before the health crisis, and the measures of containment, has announced the Insee on Tuesday 30 June. France began its déconfinement progressive on 11 may, while in April the French were confined during the entirety of the month, which has prevented them from de facto to consume. Consumption has dropped from 32% in April compared to February, according to the national Institute of statistics, which has slightly revised upwards its estimate. Compared to may 2019, the consumption of households has also declined from 8.3% last month.

The consumption of manufactured goods is increased without, however, regaining its pre-crisis level (- 14 % in may, after - 62.4% in April compared to February). It remains "relatively low" primarily due to the "very low" level of purchases of durable goods (transport equipment, equipment housing) and expenditure in clothing and textile. In contrast, the consumption of other manufactured goods " is found close to its level of February. Same to be the expenditure of energy : they are still down compared to February (- 14,3 %). Because of the decline in oil prices and a lower level of travel, the expenses of the French continued to retreat.

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On the other hand, the food consumption remains at a "high" level compared with February (+ 4.1 per cent, after + 3.4 in April). The consumption of fruits and vegetables increases slightly, as does that of processed food the agri-food industry, after a sharp decline in April and a strong increase in march, when the French have stored products in anticipation of the containment. Economists and the government are scrutinizing the level of consumption in France, because it is the main engine of economic growth and a key element to the recovery.

inflation slowed in June to 0.1 %

The rise of consumer prices slowed to 0.1 % year on year in the month of June in France, compared with 0.4 % in the previous month, also said Insee in a provisional estimate. This decline in inflation is the result of a "slowdown in prices of services and food "and a" back-accented by those of manufactured products, " stated the institute. On the other hand, the energy prices, which had sharply fallen due to the crisis of the sars coronavirus since the beginning of the year retreat, " less a year than in may ".

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Over a month, the consumer price would decline by 0.1 %, after rising 0.1 % the previous month, due to a sharp decline in the price of food. On the other hand, energy prices bounce off a month after four consecutive months of sharp decline. The index of consumer prices harmonized, which serves as the basis of comparison at the european level, slows down in June to 0.1 % from 0.4% the previous month. Over a month, it folds down 0.1 %, after 0.2% in the previous month, says Insee.

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Updated Date: 30 June 2020, 05:33

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