French downgrade consumption to cope with inflation -- a perspective on European economy

2022-08-17

In the face of soaring prices, 33 year old Frenchman Marion faval Gyeong chose to buy less fruits and vegetables in markets with higher commodity prices. She said bluntly: "it's a disaster to spend money like that." Since September last year, the consumer price index (CPI) in France has risen to record highs, with a year-on-year increase of 5.2% in May, 5.8% in June and 6.1% in July, both of which are the highest levels since 1985. According to the data of the French National Institute of statistics and economic research, in July, the prices of goods frequently purchased by the French people in supermarkets accelerated for the eighth consecutive month. The year-on-year increase in food prices reached 6.8%, of which the prices of meat, milk and eggs and their products, bread and cereals increased by 8.8%, 8% and 7.6% respectively. Affected by factors such as rising raw material prices, rising shipping costs, and global supply chain disruptions, the price of small appliances such as coffee machines, electric kettle, toasters, and various household goods has even risen higher than the inflation rate. Leon melnien, 67, told reporters that he moved to Paris from Lebanon nine years ago. He has never had enough money to go on holiday. Since this year, he has only bought food in the cheap supermarket and can save about 100 euros a month. He has given up the "small blessings" that he once once rewarded himself with, such as desserts. The French economic circles generally believe that the inflation rate will continue to rise. Bruno le Maire, Minister of economy, finance, industry and digital sovereignty of France, previously predicted that French inflation would peak in the middle of 2023 and then start to decline. Due to the rising prices of air tickets, car rentals, hotels and catering, local tourism and group travel have become the trend of French holiday this summer. Emmanuel, a resident of Aix en Provence in southern France, discussed a group trip with friends several weeks in advance and finally went to Corsica island in the Mediterranean to relax for a few days. "With my financial situation, it's impossible for me to go on holiday alone this summer." Emmanuel, 51, told reporters. A few days ago, the French parliament passed the emergency protection purchasing power bill proposed by the government. The French government will support the people to bear the peak of inflation by providing housing subsidies, oil subsidies and other measures. As the summer draws to a close, faval Jiyong began to worry about the heating cost in winter. "My house is heated by fuel oil and firewood. Even if one of the government's emergency measures is fuel subsidy, the heating fee is still very expensive." This winter, more than 3 million French households using fuel oil for heating will face great pressure. In the year to May this year, the price of fuel oil in France increased by 84%. "We have to manage our daily life. The French need to adapt to the new situation." Melnian said. (news agency)

Edit:He Chuanning    Responsible editor:Su Suiyue

Source:Xinhua

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