Inflation is “no longer an issue” for businesses.

At a time when the issue of salary increases is now featured in every speech of the President of the Republic and the Prime Minister, provisional data published on Friday, February 9 by the Research Animation Department, the Ministry of Studies and Statistics Labor, show that they will slightly exceed inflation in the fourth quarter of 2023. has increased. This is only the second time since inflation rose in 2021.

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The basic monthly salary of all French people (excluding gross wages, bonuses or overtime) thus rose by an average of 0.3% during the quarter, an increase of 3.8% over the year. Over the same period, basic hourly wages for workers and employees increased by 0.4%, or +4.1% over the year.

The Consumer Price Index rose 3.6% year-on-year in December 2023, a figure that reflects a small increase in purchasing power. Good news that must be deserved though. First, let’s recall that between December 2022 and December 2023, the INSEE food price index alone increased by 7.2%.

Then, observing the trend highlighted by the study published on Friday February 2, By the study and data center of the Alpha-Cecafi group. The firm analyzed 421 salary agreements concluded for the year 2024 as part of mandatory annual negotiations. That is, all contracts that mention the increase are available on the Legislature website as of January 10.

Normal growth is decreasing

What do they reveal about the 2024 salary policy? which is “Marked by a reduction in the supplementary budget, a reduction in general supplementary patronage and an impoverishment of peripheral measures”,

Summarizes admissions studies.

The envelopes dedicated to wages for 2024 (+3.5% on average) are thus sharply down compared to 2023 (+4.6%). It must be said that the context has changed: inflation is slowing (but steadily rising), growth forecasts are bleak, business failures are on the rise and recruitment pressures are easing.

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Companies that were slow to adapt their budgeting practices to the extraordinary economic context of recent years, effectively passing on the costs of inflation to employees, expect this crisis to end more quickly. “All measures to support purchasing power are running out of steam in the context of hyperinflation. For businesses, this no longer seems to be the case

a subject”, notes Alice Rustic, research manager of Alpha Group’s studies and forecasting division.

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