Imagine a slowdown in price increases over the past year

If prices remain high, the pace of inflation continues to decline, reaching 2.3% year-on-year in March, the lowest level since September 2021.

Time to calm down. According to the provisional estimate published by INSEE on Friday, March 29, inflation was 2.3% over the year in March, confirming the decline seen since the beginning of 2023. We have to go back to September 2021 to find the lower rate shown. Through the evolution of the Consumer Price Index in recent years.

Inflation is thus approaching levels recorded before the Covid-19 pandemic and the war in Ukraine. “Inflation shock to last 3 years”Analyzes Philip Vechter on social networks “Should normalize to 2% during second quarter”.

Inflation is decelerating for all consumption goods. The phenomenon is particularly notable for food, where prices are projected to rise 1.7% over the year in March, compared with 3.6% in February. Food inflation has not fallen below the benchmark 2% since February 2022.

The increase in the prices of manufactured goods fell to +0.1% in March after +0.7% in February. On the energy side, March rose to +3.4% compared to +4.3% in February. The slowdown in services is more timid: +3.2% in February followed by +3% year-on-year in March. Tobacco finally fell to +10.7% in March after reaching +18.7% in February.

This overall trend does not mean that the cost of living will start falling again. “Let’s not forget that if inflation slows, prices remain high, especially in energy and food.Economist Philip Vector recalls, And these are factors that weigh on the purchasing power of households.