The Bank of France published an analysis of a survey of more than 4,000 French households showing that the 2022-23 inflation shock continued to shape perceptions and economic behavior at the end of 2025. Average perceived inflation was 9.5%, compared with measured inflation of 0.8%, while 54% of respondents still ranked inflation and purchasing power among their top economic priorities. Memories of cumulative price rises, particularly the roughly 20% increase in food prices from 2021 to 2025, contributed to the gap as households noticed increases more readily than declines. More than eight in 10 respondents believed their purchasing power had fallen over that period, despite aggregate data showing income per capita rose faster than consumer prices. Perceived losses affected behavior: 63% reported changing their spending, including paying closer attention to prices and postponing or abandoning purchases, and more than 90% retained some habits adopted during the inflationary episode.
2026-09-16Bank of France
Bank of France finds lasting inflation scars, with perceptions about nine percentage points above the 2025 rate
The Bank of France found that average perceived inflation remained at 9.5% at the end of 2025, compared with a measured rate of 0.8%. More than eight in 10 households believed their purchasing power had fallen, and 63% reported changing their spending behavior following the 2022-23 inflation shock.