The Banque de France also predicted that between April and June, gross domestic product (GDP) would progress by 0.1% compared to the first quarter, when it had increased by 0.2%.
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Will prices drop in the coming weeks? The Banque de France reported an improvement on Thursday, June 8, even though inflation remains high. “For the second consecutive month, manufacturers believe that prices are down sharply for raw materials and that they are stabilizing for finished products”writes Olivier Garnier, director general of statistics, studies and international affairs at the Banque de France, in his monthly business survey.
“For the first time, the prices of services are also stopping to increase, while those of construction continue to slow down. Recruitment difficulties are falling again, but still concern nearly half of companies (49%)”he notes. “This confirms our belief that the peak of inflation is probably reached during the second quarter of this year. [entre avril et juin]and that we should see a slowdown in the second half”he added.
But if manufacturers mention a “significant decline” raw material prices in May, they doubt they will be able to pass it on in its entirety to selling prices due to the increase in the cost of inputs and wage increases. Thus, 5% of manufacturers say they lowered their selling prices in May, 10% increased them and even 13% in the food industry, a sector accused by the government of dragging its feet to revise its prices downwards. In services, 12% of companies say they have raised their prices, compared to 19% in April.