Inflation up 1.9% in August

The minimum wage will see an automatic increase on October 1.

Inflation accelerated by 1.9% in August over one year, according to figures from INSEE. Over one month, the consumer price index (CPI) rose 0.6%, after + 0.1% in July. “This rise in inflation results in particular from the rebound in the prices of manufactured products (+ 1.1% after -1.1%)“, Those of energy, food and services, explains the National Institute of Statistics in a press release.

The minimum wage will increase automatically on October 1, due to a 2.2% increase in the price index serving as a basis for possible revaluations. “The consumer price index excluding tobacco for households in the first quintile of the distribution of living standards (…) is up by 2.2%“Compared to November 2020, the reference month during the last revaluation of the minimum wage on January 1, adds INSEE. This development opens the way to an increase in the minimum wage, since according to the Labor Code, an increase of at least 2% must lead to an increase in the minimum wage on October 1.

The gross hourly minimum wage is 10.25 euros

The exact amount of the minimum wage revalued on October 1 should be communicated during the day by the Ministry of Labor. The minimum wage was increased by 0.99% on January 1 to reach 1,554.58 euros gross per month, an increase of 15 euros. This increase, which corresponded to an automatic revaluation of the minimum wage, brought the gross hourly amount to 10.25 euros.

Each year, some unions, such as the CGT which claims a minimum wage of 1,800 euros, ask the government to go beyond the automatic increase, but the last “boostDates back to July 2012 the day after the election of Socialist President François Hollande. Governments that followed refrained from any one-off increase, arguing that it would hurt the employment of the least skilled. In detail, the rise in prices for food (+ 1.3%), energy (+ 12.7%) and services (+ 0.7%) continued in August.

The harmonized consumer price index (ICPH), which serves as a basis for comparison at European level, increased by 2.4% over one year, after + 1.5% in July. Over one month, it rose 0.7% after + 0.1% the previous month.


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