The poverty rate in France increased in 2021 to stand at 14.5% of the population, according to INSEE

The poverty rate stood at 14.5% of the population in 2021 in France, up 0.9 points compared to the previous year due in particular to the increase in inflation, declared the Insee Tuesday November 14.

In 2021, 9.1 million people were in a situation of monetary poverty in France, that is to say they had monthly income below the poverty threshold, set at 60% of the median income, or 1,158 euros for a single person, details the National Institute of Statistics.

The non-renewal of the aid in question

The poverty rate has increased because the poorest households have been penalized by the “non-renewal of exceptional solidarity aid” put in place by the government at the height of the Covid crisis in 2020, as well as by rising inflation.

“Many benefits are indexed to inflation, but there is a period during which inflation is present without the revaluation and during which low-income households are penalized,” said Jean-Luc Tavernier, director general of INSEE. Inflation increased from 0.5% in 2020 to 1.6% in 2021. Poverty also intensified, from 18.7% in 2020 to 20.2% in 2021. This indicator measures the gap between the median standard of living of the poor population and the poverty line. “It returns to the level of previous years,” said Jean-Luc Tavernier.

Regarding inequalities, not “explosion” according to him, but certain indices, which are rising sharply, are located “in the highest levels reached in the last twenty years”.