inflation is at its highest, growth is not increasing

The fallout from the war in Ukraine continues to affect Europe and France. Our economy is suffering and two figures show it: that of inflation, at + 4.8% over one year, unheard of since 1985, and that of growth, at a standstill. “0% is growth in the first quarter of 2022. This means that the French economy is at a standstill. There are several reasons for this, including the war in Ukraine, the Covid-19, but above all household consumption, down sharply by -1.7%”explains journalist Alexandre Hébert from the writing of franceinfo. “At the same time, inflation is at its highest, well above anything we have known, including in 2009, at the peak of the great economic crisis. To find such a level of inflation , we have to go back to 1985. However, it is below the German level, 7.4%, and the Spanish level at 8.4%”he continues.

This inflation primarily affects the most modest households: “The price of many basic products has risen sharply, such as oil, coffee, sugar and even butter. The biggest increase, 5.3%, concerns the price of meat. Professionals are also affected by these sharp increases. Those in the food sector but also those in the construction industry. It remains to be seen what consequences this situation will have on French GDP at the end of the year.”says Alexandre Hébert.