Does inflation force the French to dip into their livret A?

In October, the French dipped more into their woolen stockings than they put money aside. The collection of the Livret A is largely negative in October with -1.1 billion euros for all the networks.

So is this a disaster and the beginning of the ravages of inflation on the purchasing power of our households?

Not so sure actually.

Indeed the month of October is traditionally a bad month for the booklet A because it is a time of expenditure, not of economy. People spend on back-to-school purchases, to pay property taxes, or the remainder of housing tax, not to mention the income tax catch-ups to be paid.

The outflow of the Livret A in October is therefore a known phenomenon and this year it was rather less strong than usual and it is one of the weakest of the last ten years”.

With the increase in the rate of remuneration linked precisely to the increase in the key rates of the ECB themselves on the rise due to the rise in inflation, the livret A could even experience an annual collection even stronger than expected.

Finally, for the moment not only can we not say that inflation is pushing the French to dip into their woolen stockings, it could even be paradoxically the opposite. The French will save more just in case and because they are cautious. It’s quite a good idea. Caution is the mother of safety.

Charles SANNAT

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