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In 2014, after a few years of sharp decline, the purchasing power in France reached *** percent. In 2013, the purchasing power in France experienced its strongest decline since 2007. With a decrease of ** percent compared to the previous year, French purchasing power reached a level lower than the one attained in 2008 during the economic crisis. 

The decline of French purchasing power

Purchasing power, which is the quantity of goods and services that an income can buy, is linked with the inflation rate and the disposable income of households. In France, the inflation rate peaked at 2.8 percent in 2008. After a decline from 2011 to 2015, the inflation rate in France increased between 2015 and 2018, reaching *** percent in 2018. It amounted to *** percent in 2023. This had a strong impact on the purchasing power of French households since the average annual household disposable income in France remained stable since 2005.

An important issue in the French public debate

The purchasing power has always been a sensitive topic within the French public debate. In 2019, during the Great National Debate launched after the Yellow Vests movement, purchasing power was mentioned as the priority issue that should be addressed during the debate. Most of the French public perceived the economic policy pursued by Emmanuel Macron and his Prime Minister as having a negative impact on their purchasing power.