France Faces Historic Purchasing Power Crisis as Households Lose €1,200 Since 2024

France is experiencing a historic crisis in purchasing power, with an average loss of €1,200 per family since 2024. According to recent analysis, real wages in France have been declining since 2019, a rare and concerning trend for the country's economy. Until 2025, this fall in salaries was somewhat offset by social transfers and income from assets. However, these compensations are no longer effective in 2025 and 2026, leading to a continued drop in purchasing power for the second consecutive year.

This back-to-back decline is unprecedented in recent French history, occurring only twice since 1960, highlighting the severity of the current economic environment. As a consequence, many French households are feeling the squeeze, impacting their ability to maintain living standards amid inflationary pressures.

The situation reflects deeper structural challenges in the French economy and social policy, where previous safety nets from social transfers are now insufficient to mitigate income losses. This extended downturn in household financial health underscores the urgency for policy intervention to support families.

In sum, the purchasing power of French families is undergoing one of its most significant historic declines, signaling tough times ahead for many in France.