Inflation accelerates to 2,2% year-on-year, with the minimum wage increased by 2,4% on June 1st.

Consumer prices rose by 2,2% year-on-year, according to the latest figures published by INSEE, the French National Institute of Statistics and Economic Studies. This acceleration in inflation comes after several months of relative stability and marks a return of price pressures. The institute points to the increase in energy costs, directly linked to soaring oil prices on international markets. French households are thus experiencing renewed pressure on their purchasing power, particularly at the pump and on their utility bills.

Automatic increase of the minimum wage

This rise in inflation automatically triggers an increase in the minimum wage. The minimum wage (SMIC) will be increased by 2,4% starting June 1st, in accordance with the legal indexation mechanism. This automatic increase aims to protect the purchasing power of lower-income workers against monetary erosion. Several million employees will be affected by this increase, which will take effect in the middle of the year.

The current situation is reminiscent of the inflationary pressures seen in recent years. Businesses will have to absorb this rise in wage costs in an economic context marked by volatile commodity prices. The government is closely monitoring price developments, aware that any sustained decline could weigh on consumption and weaken the recovery. The coming months will be crucial in assessing the resilience of the French economy to these external shocks.