Inflation has significantly impacted the cost of living for households in France, particularly in terms of food, housing, and transportation expenses. Between 2017 and 2022, the cost of the food, housing, and transportation basket increased by almost 14% for households located within 10 km of urban employment zones and nearly 18% for those over 30 km away. These increases equate to approximately 6% and 8% of household income respectively in 2017.
The rise in costs is most notable for fossil fuels, with oil prices increasing by 140%. However, certain products or services have been less affected, such as rents. The impact of inflation on household budgets depends primarily on the composition of goods and services consumed.
For instance, the poorest households (the bottom 10%) saw their basket costs increase by about 14%, which constitutes 13% of their resources. Conversely, the wealthiest households (the top 10%) experienced a 16% increase, but this only represents around 5% of their resources.
Moreover, the increase in the cost of the basket tends to be more pronounced the further one moves from the city center, where energy costs make up a larger portion of household budgets. When considering the cost increase in relation to household income, it's evident that the impact is greatest on the poorest households. This is because these households spend a higher percentage of their income on essential goods and services.
This analysis underscores the disparities in the impact of inflation across different socio-economic groups and geographic locations in France. It highlights that households in rural areas, those owning property, and older individuals bear the greatest burden of rising costs related to housing, transportation, and food. However, when considering the impact in relation to household income, it's clear that the most vulnerable households (the poorest) experience the greatest financial strain due to inflation.
