Cost of Living in France: The Gap Between Perception and Economic Reality Is Widening

Against a backdrop of economic and political uncertainty, particularly in Europe, an Ipsos study highlights a growing gap between political rhetoric on controlling inflation and the day-to-day experiences of the French people. The findings reveal persistent pessimism regarding the cost of living, despite a slight lull in inflation.
 

Mismatched Perceptions: Inflation Under Control, but Concerns Persist
While policymakers and economists point to a deflationary trend, a majority of French people do not share this optimism. According to the survey, 68% of French people believe that prices will continue to rise in the coming months. At the same time, 44% feel that their quality of life has deteriorated since the COVID-19 pandemic.
 

The contrast is particularly striking in the debate surrounding the Livret A savings account, whose rate of return was recently lowered due to the decline in official inflation. This decision fuels a sense that policy decisions are out of touch with the reality as perceived by households.
 

The Causes of Rising Prices: Public Policy Takes the Blame
For a large majority of French people (77%), political decisions are the primary cause of rising prices—a figure that has risen sharply (+9 points) compared to November 2023. This percentage places France among the countries most critical of their leaders, well above the global average (69%).

While 74% of French people still consider the global economic situation to have a significant impact, this proportion has decreased slightly (-1 percentage point). Excessive corporate profits, which are often singled out, are now considered to be responsible by 71% of respondents, down from 75% in June 2022. Other factors, such as immigration, are seen as having a growing influence: 55% of French people believe it contributes to price increases (+4 points). Finally, interest rates, although down slightly, continue to weigh on purchasing power for 67% of French people, while the impact of the war in Ukraine (66%) and the COVID-19 pandemic (55%) is perceived as less significant than before.
 

Gloomy Economic Outlook for 2024
Despite falling inflation, the French remain largely pessimistic about their future financial situation. 41% expect a decline in their disposable income—that is, the amount remaining after fixed expenses are paid. Although this figure has decreased slightly (-2 points) compared to the previous year, concern remains palpable.
Essential expenses are the biggest source of concern. 70% of French people believe that food prices will rise in the next six months, a figure close to the global average (72%). Energy, another crucial budget item, is also a major concern: 77% of respondents believe that energy costs will continue to rise.
Housing is no exception to this trend. One in three French people expects rents or housing costs to rise in the coming months, a figure up 4 percentage points from November 2023. Leisure activities are not spared either, with 60% of French people expecting price increases for outings, restaurants, and other activities (+2 percentage points).
 

Taxes, Unemployment, and Public Services: Converging Concerns
The specter of tax hikes is fueling growing pessimism, with 74% of French people convinced that their tax burden will increase. This figure has reached its highest level since April 2022. Furthermore, 58% of those surveyed fear a rise in unemployment, and 37% believe their standard of living will continue to decline.
This gloom is accompanied by complex reflections on the role of public services. Although the French are attached to these services, they seem to favor short-term solutions to ease their tax burden. Thirty-four percent favor tax cuts, even if it means reducing public spending, while 23% prefer the opposite approach.
 

A barometer revealing persistent unease
The Ipsos survey highlights a France still reeling from the consequences of successive crises, from the pandemic to inflation. Although certain economic trends are improving, the French public’s outlook remains largely pessimistic, fueled by concerns about the cost of essentials, political decisions, and the future of public services. This disconnect between economic rhetoric and everyday reality poses a major challenge for policymakers, who will need to work to regain the trust of a population seeking stability and positive prospects.