Inflation rises in France once again

France's annual inflation in August amounted to 4.8 per cent, having started to rise again, according to a preliminary report by France's National Institute of Statistics (Insee) released on August 31.

"Year-on-year price growth in August amounted to 4.8 per cent after 4.3 per cent in July. This is the first rise in inflation since April," Insee reported.

Inflation was influenced by a 6.8 per cent rise in energy prices, after 3.7 per cent a month earlier, and especially by the price of petroleum products and a 10 per cent increase in electricity bills from August 1.

Food prices continue to decline slightly, with price growth of 11.1 per cent in August after 12.7 per cent in July.

Recently, the head of France's largest retailer Carrefour, Alexandre Bompard, warned of a "tsunami of underconsumption", pointing out that many shoppers can no longer afford the essentials. He demanded that the government lead a year-long moratorium on a law capping the amount of discount that distributors can offer consumers at 34 per cent to help small businesses.

At the same time, the government this week re-entered talks with distributors and large stores in an attempt to persuade them to lower prices on more products, Prime writes.

At the end of June, French Finance Minister Bruno Le Maire warned the French that inflation would no longer return to the level it was at before the COVID period.

He attributed this to the economic course of nationalisation of a number of key industries, as well as actions to combat climate change. Nevertheless, according to the forecasts of the French central bank, after the peak of inflation in the first half of the year, it will gradually slow down and reach about 2 per cent at the end of 2024.