Income growth has stagnated as prices for essential goods and energy are on the rise. New figures from France’s National Institute of Statistics and Economic Studies (Insee) indicate that France could be entering a period of stagflation.
Rising prices and weak economic growth could create the ideal circumstances in France for stagflation, some analysts warn. The combination of inflation and stagnation is an economic contradiction that risks undermining quality of life for many in France. While slow growth normally means an increase in unemployment that decreases spending power, rising prices mean the money consumers do have begins to lose value.
