“From now on, wages will increase faster than prices”, according to the governor of the Bank of France

According to forecasts from the Banque de France, inflation will slow significantly in the coming months. Its governor assured Tuesday on France Inter that it will be reduced to 2% by 2025.

Good news for active people: “From now on, prices will increase less quickly than wages”, predicted the governor of the Bank of France, François Villeroy de Galhau, guest on France Inter on Tuesday December 19. While at the start of the year, inflation was at 7%, currently it is around 3.5% on average, over one year. François Villeroy de Galhau declares that he can bring it down to 2% in 2025, which is, for him, “not only a forecast but a commitment”.

This drop in inflation should allow the French to see their purchasing power improve in the months to come. It is therefore not thanks to salary increases. In 2024, salary increases are likely to be quite contained, more moderate than this year, because the economic situation is getting darker. Activity is declining and business leaders are worried, so they will tend to be more careful.

Increase in salaries in digital, finance and legal professions

Only, the minimum wage will increase automatically, that’s the rule, it is modeled on inflation. Even without additional help from the government, next month the increase should amount to around 20 euros per month. The minimum wage will then slightly exceed 1,400 euros net. For the rest, it depends on the profession. According to the latest study by the Robert Walters firm, for executives, employers will have some salary largesse but be careful, not for just any profiles: the best off will be those who occupy professions linked to digital, artificial intelligence and cyber security. Increases could go up to 7%. Positions in finance or legal can expect a 5 to 6% increase. As always, these are averages. Everything will depend on mandatory annual salary negotiations, many of which are currently being held in companies.

1^er January 2024, all agents of the three public functions, state, territorial and hospital, will be concerned. Police officers, like town hall gardeners or nurses will gain five index points in their pay scales, or the equivalent of 20 euros net per month more. Too little for the unions, who are asking the government to open negotiations for 2024. For the moment, nothing is planned. The centrals warn that, if nothing changes, there could be strikes in public services as early as the first quarter of next year.