“On the evolution of purchasing power, an increasingly biased diagnosis” | EUROtoday

DEtuis the transition to the Euro in 2000, the nations of the European Union are required to provide, in response to a standard methodology, a index of harmonized consumption costs (IPCH). It is on the premise of this inflation indicator that the European Central Bank ensures compliance with Maastricht’s standards and worth stability. The National Institute of Statistics and Economic Studies (INSEE) has chosen to proceed to provide a National Consumer Price Index (IPC), which extends the lengthy -standing clues in our nation. The two clues are printed every month by INSEE.

Since 2000, we have now noticed in France a reasonably systematic and rising hole between the 2 indices. Between the start of 2000 and the top of 2024, the worth of harmonized costs for France (IPCH) elevated by 59.7 %, in opposition to a rise of 51.5 % for the INSEE (IPC) index. The hole, which was round 0.1 to 0.2 level per yr till 2020, widened with the revival of inflation and exceeded 0.5 level per yr over the Nineteen Twenties and 2014.

This distinction is because of technique variations and, specifically, to the truth that the INSEE index retains “raw prices”, earlier than bearing in mind help to shoppers, whereas the European index retains “net prices” of those identical aids, in full compliance with the consensual suggestions of worldwide organizations.

This conceptual distinction has notably delicate results for well being items and companies, the worth of which fell by 7.9 % in response to INSEE between January 2000 and December 2024, in opposition to a rise of 33.8 % in response to the European model of the French IPC, primarily beneath the impact of the discharge of sure well being items and companies, which elevated the remainder of households. The distinction noticed between the 2 clues raises questions concerning the makes use of that may be made. It is important right here to obviously distinguish two types of use.

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