With looming elections and a draft budget that aims to address a €305.7bn financing requirement, French households are increasingly in the red. Will wages ever manage to outpace energy inflation?
Against a backdrop of global conflict, ongoing energy shocks, disrupted trade flows and heightened political tensions in the run-up to landmark elections, financial markets continue to reverberate as governments attempt to manage deficits while curbing inflation. But it isn’t just central bank monetary policy that is having to pivot. France itself is navigating a purchasing power crisis that is affecting households in very real terms, with consequences that extend beyond short-term impact to cost-of-living.
