This decline in price increases is explained in particular by a “slowing down” in the rise in energy and food prices. Public debt rose to 110.7% of GDP at the end of the first quarter.
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The price increase in France in June 2024 was 2.1% over one year, or 0.2 points less than in May, the National Institute of Statistics (Insee) announced on Friday June 28. Inflation is thus resuming its slow decline after a slight increase, where it had increased by 0.1 point compared to the month of April (2.2% over one year). In June 2023, it still reached 4.5%.
The decline observed in June can be explained both by a “slow-down” the rise in energy and food prices, and a change at the same rate as in May in the prices of tobacco, manufactured goods and services, the Institute details. The cost of food products rose by 0.8% over one year in June, that of energy increased by 4.8%, while it was still increasing by 5.7% a month earlier.
France’s public debt climbed to 110.7% of GDP at the end of the first quarter, compared to 109.9% (revised downwards) at the end of 2023, INSEE announced. The country’s public debt, which has increased massively since the health crisis, increased by €58.3 billion to reach €3,159.7 billion, while the poor state of public finances is one of the central issues of the early legislative election campaign. Public debt is down compared to the first quarter of 2023 (111.9% of GDP).
The increase recorded over the first three months of the year is mainly due to the increase in the State debt (+44.4 billion euros), while that of the Social Security administrations increased by 12.9 billion euros. On the other hand, the debt of local public administrations remained almost stable (+0.8 billion), as did that of various central administration bodies (+0.2 billion).
To reduce debt and bring the public deficit below the European threshold of 3% of GDP, the government planned, before the announcement of the dissolution of the National Assembly on June 9, a budgetary effort of an additional 20 billion in 2024, then another 20 billion in 2025. After seeing its sovereign rating downgraded by the rating agency S&P Global Ratings at the end of May, France was singled out in June by the European Commission, which opened the way to a procedure for excessive public deficits.