France faces historic purchasing power crisis: Since 2024, families have lost €1,200/year on average
- Posted on September 30, 2026
- By Le Monde
- 2 Views
- 1 min read
In brief
France is experiencing an unprecedented economic squeeze affecting millions of households. Since 2019, wage stagnation has plagued workers, but government benefits and investment income previously cushioned the blow. However, 2025-2026 marks a critical turning point where these safety nets have failed to compensate, resulting in consecutive years of purchasing power decline—a rare occurrence happening only twice since 1960. Families are losing approximately €1,200 annually.
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France faces historic purchasing power crisis: Since 2024, families have lost €1,200/year on average
Real wages have been falling since 2019 – a rare phenomenon – but, for a long time, social transfers and income from assets made up for it. In 2025 and 2026, that is no longer the case. As a result, average purchasing power fell over two consecutive years, something that only happened twice since 1960.
