Purchasing power, holidays, real estate: what are the impacts of inflation for the French?

Gauthier Delomez 5:55 p.m., June 29, 2022

EXCLUSIVE

The price to pay for continuing to support Ukraine.

Like their European neighbours, the French are affected by the rise in inflation.

Fuels, food, everyday products, real estate... The increase in prices is general, and more and more consumers are feeling it in everyday life.

This Wednesday, Odoxa unveils exclusively for Europe 1* its barometer on the consequences of inflation in France and Europe, and several lessons can be drawn from it.

More than nine out of ten French people already affected by inflation

First, this surge in inflation worries 92% of French people, according to the Odoxa barometer.

Among them, four out of ten even feel very worried.

These are comparable figures with our European neighbours.

In Spain, the proportion of people who say they are very worried is exploding: more than six out of ten Spaniards strongly fear the effects of inflation.

Conversely, it is in Germany that the share of the population that fears this phenomenon the least is the largest (13%).

The effects of inflation are already reverberating through consumers' wallets.

Nine out of ten French people feel that their daily purchasing power is impacted by the general price increase.

They are also 45%, or almost half, to feel an unparalleled drop in their purchasing power because of this economic phenomenon.

As a whole, Europeans say they are also affected by inflation, with 89% of them believing they are affected.

This survey also reveals the perception of Europeans to be in the same boat in the face of rising prices.

Nearly 70% of French people questioned by Odoxa do not think that France suffers less from inflation than the other countries of the European Union.

A share that rises to 77% on average in Europe (excluding France).

Similarly, three quarters of French people and almost as many Europeans (74%) do not believe that their country will resist inflation better than their neighbours.

A drastic reduction in daily expenses

Faced with this phenomenon, which impacts everyday life, many consumers have had to modify their spending.

This is another lesson from the Odoxa barometer for Europe 1. Nearly half of French people (46%) and Europeans (47%) have changed their buying habits, in at least one area of ​​daily life.

This concerns common consumer goods (clothing, etc.), daily consumption, holidays and leisure, household or household products and food products.

In France, spending on leisure is the most affected.

In total, 68% of those surveyed explained that they had drastically reduced their spending in this area.

Common consumer goods are also among the most affected, with 56% of French people surveyed saying they have reduced their purchases a lot.

Among Europeans, the Germans are those who have already changed their spending the most in all the aforementioned areas, except for holidays and leisure.

63% of French people will change their plans for the summer holidays

The third major lesson from the exclusive Odoxa barometer for Europe 1 refers to vacation plans.

63% of French people who had planned to leave this summer have changed their plans because of inflation, either by choosing a new destination (19%), or by reducing the length of stay (20%) or even by giving up leaving (24%).

On the contrary, nearly four in ten respondents are maintaining their plans, for the time being (37%).

Real estate, savings, mobility... How the French are changing their habits

The Odoxa survey also shines the spotlight on the general character of the price increase.

Real estate, savings, mobility are particularly affected by rising inflation.

For real estate, more than half of the French who responded (56%) say they have changed their forecasts for their future projects.

In addition, almost half of those concerned (48%) share their concerns about paying their rent.

Due to inflation, 36% of them have already dipped into their savings, or even taken out one or more loans, to meet their daily expenses.

A share of the French which also rises to 61% if we take into account those who plan to do so.

Finally, the last area impacted by the rise in inflation is the mobility of French people.

One person in three (33%) emphasizes having changed their transport habits, also taking into account a concern for the environment.

With those who are thinking of changing their mobility, this share rises to 48%, or nearly one in two French people.

However, majority support for sanctions against Russia

Despite these general price increases due in part to the war in Ukraine, neither the French nor the Europeans want to "let go" of Ukraine, according to the exclusive Odoxa barometer for Europe 1. Six out of ten French people (61%) lean towards contrary to tougher sanctions against Russia, even if this leads to a further rise in inflation in Europe.

This is the average among our European neighbours.

It is the British who want more sanctions against Russia (72%), while the Germans seem more divided between those who want strong support for Ukraine (51%), and just under half ( 45%) who would prefer a limitation, or even an end to sanctions to bring inflation down.

According to INSEE, the general rise in prices should continue to accelerate to reach 6.8% over one year in September in France, then remain at this rate during the last months of the year.

This outbreak will weigh on the economy, with growth expected at 2.3% in 2022.

*Survey carried out on a sample of French people interviewed by internet on June 15 and 16, 2022, on a sample of 1,005 French people representative of the French population aged 18 and over.

The representativeness of the sample is ensured by the method of quotas applied to the following variables: sex, age, level of diploma and profession of the interviewee after stratification by region and category of agglomeration.

Survey carried out on a sample of Europeans interviewed online from June 17 to 22, 2022. Sample of 1,992 Europeans (including 486 English, 501 Germans, 502 Italians and 502 Spaniards).

Representative sample of the population of each country aged 18 and over (sex, age, CSP, regions).