War in Ukraine: executive promises to protect households

The outbreak of energy prices, especially gas and oil, revived the fears of sustainable inflation, which would amputate the purchasing power of the French a few weeks of the vote.

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The purchasing power already occupied a central place in the election campaign, the war in Ukraine has just given it a new vigor. The outbreak of energy prices, especially gas and oil, caused by the Russian invasion Thursday, February 24, revived the fears of sustainable inflation, which would amputate the purchasing power of the French to a few weeks ballot. For the first time since 2014, the price of the barrel of crude has made the $ 100, gas won nearly 30% in one day while cereals, especially wheat, crossed historical records.

In the afternoon, Matignon brought together the Mayor, the Minister of the Economy, Barbara Pompilili, the Minister for the Energy Transition, and Olivier Dussopt, the Minister responsible for public accounts, to do One point on the economic consequences of the invasion, particularly in the energy markets. The supply of gas and oil hex, of which Russia is a large exporter, is not a matter of short-term concern, says the executive, because of the stocks that France has been established. These allow him to hold several months in case of interruption of the Russian side or sanctions European side, recalls the entourage of Barbara Pompilili.

The rise in prices, especially oil, is, on the other hand, more concerns Executive side even though prices are already high and that “one is usually one to two months so that crude prices affect In pump prices, “explains Ano Kuhanathan, Analyst at Euler Hermes.

It has been several months since the gradual increase in gas, electricity and oil prices have forced the government to take accompanying measures to mitigate the effects on households. More than 15 billion euros have been mobilized since the end of the summer of 2021, with a gel of the price of gas and electricity for all year 2022, a heating assistance for modest households, and a check of 100 euros, baptized “inflation allowance”, distributed to 38 million households. The milestone that allows motorists to deduct from their taxes their professional transportation costs has also been revalued in January.

A device that has so far pretty better protected the French, especially the most modest, than those adopted elsewhere in Europe, estimate the analysts of Euler Hermes in a note. But the savings accumulated by households during the CVIV-19 crisis, concentrated by the earliest 40%, will not suffice to absorb the extra on the energy bill, they warn.

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/Media reports.