Emmanuel Duteil, with Manon Bernard 4:40 p.m., August 31, 2021

For some time now, the bill after the checkout has been steep: prices have increased and this is not just an impression.

INSEE published the figure for inflation in France on Tuesday morning, with an increase of 1.9% over the last year.

Europe 1 explains to you what this jump in prices is due to.

DECRYPTION

Inflation is back. The figure published by INSEE on Tuesday morning confirms the feeling that many French people have experienced while shopping: prices have increased by 1.9% over one year. If we want to see the glass half full, this is good news, because it is the sign of an economy which is recovering after the coronavirus crisis. But for now, consumers have to pay. Europe 1 deciphers the mechanism of this recent rise in prices. 

The price increase is due to the enthusiasm of consumers for the same product.

Everyone orders the same thing, so raw materials are running out and the transportation costs to get these products are skyrocketing.

For example, shipping has never known such a frenzy.

The boats are currently waiting no less than eight days off the port of Los Angeles, in the United States, before being able to unload the goods!

10 to 15% more on raw materials in the building industry

And almost all sectors are affected.

In the building industry, the bill is also climbing, notes Olivier Salleron, president of the French Building Federation.

He mentions an increase of "10 to 15%" in the prices of raw materials and therefore "a price increase on future quotes".

"It would still be suicidal if our artisans and entrepreneurs did not pass on these prices," he continues. 

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Added to this is the bad news: fruit and vegetable prices are soaring, but for another reason.

It is linked to the bad harvests, due to bad weather this spring.

By the end of the year "prices will start to fall again"

But if all goes well, these economic factors should resolve themselves. If the harvest is good in the coming months, prices will fall again. And, within a year or so, pressures on commodities should ease considerably. "We hope that this trend on many products (on wood, it will be difficult), but on the others, can diminish before the end of the year", specifies Olivier Salleron for his sector. Before adding: "The prices will therefore start to fall again. We strongly hope so, of course."

Finally, an important element must be taken into account to reassure yourself a little bit. Of course, receipts are increasing, but these increases come after years of near-zero inflation. Result: these increases remain fairly limited, according to economists.

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