France Faces Historic Purchasing Power Crisis: Average Annual Household Purchasing Power Down €1,200 Since 2024
Summary
France is facing a historic squeeze on household purchasing power, with the average family of four losing about €1,200 a year in real terms since 2024. Rising prices have outpaced wages, while weaker social support and higher unemployment are deepening the pressure.
Key Points
- Average household purchasing power in France has fallen by about €1,200 a year since 2024, with another decline expected in 2026.
- Inflation since 2021 has outpaced wage growth, leaving real wages more than 2% below late-2019 levels.
- Social security support and government room for new aid are limited by high public debt and deficit-reduction goals.
- Lower middle-class and rural households are being hit hardest, while consumers increasingly buy cheaper store-brand goods and cut spending.
