In the euro area, prices have continued to rise in many areas in recent years.
Would you like to receive The Connexion's free weekday newsletter?
Please register here
The eurozone has experienced higher month-over-year inflation month-over-year in recent years, and while France was by no means the hardest hit, there has been widespread easing as prices begin to stabilize.
According to a March 2023 report to the EU's Economic Governance Committee, the invasion of Ukraine in February 2022 triggered an energy crisis in many EU countries as Europe seeks alternatives to Russian gas. caused a price increase.
“The sheer expectation of future shortages (particularly of natural gas) has led to significant increases in energy prices.”
The invasion also caused food prices to soar as alternatives to Ukrainian grain were sought.
Price increases in the euro area are stable
Eurozone-wide energy prices have been recovering from the initial shock of the invasion since spring 2023. By October of the same year, energy prices had returned to their natural levels, falling -11% year-on-year.
Energy prices will continue to decline until 2024 (-1.8% year-on-year as of March 2024).
However, prices are still rising in other sectors, particularly food (up 2.7% year-on-year) and services (up 4% year-on-year).
These price increases do not affect all countries in the euro area equally. France in particular was protected from rising energy costs by government price shields.
Read more: See also: Most electricity prices in France rise by 9.8% in February
The measure was ultimately withdrawn in January 2024, Public Accounts Minister Thomas Cazenave said: france info He argued that falling prices would make it possible to increase taxes in stages.
“We need to manage our finances better,” he added.
It's still a painful topic.
Inflation, which has fallen year over year and is actually below interest rates for the first time since 2022, is in the news again. Issues in traditional May 1st protests.
“Inflation has been amplified by market speculation on energy and food prices, and most companies have been able to get away with raising prices without raising wages,” the CGT Labour's Confederation said.
