France’s Cost-of-Living Crisis Deepens: Families and Small Business Owners Feel the Squeeze

Rising prices, frozen benefits, and a growing strain on France’s self-employed — how families and small business owners are struggling to stay afloat amid inflation and energy pressures.

As France continues to face inflation and rising costs, households are not the only ones tightening their belts. The cost-of-living crisis is now spreading to small business owners, with both families and independents reporting that budgets are stretched to the limit.

Throughout 2025, everyday expenses – from groceries and fuel to rent and utilities – have climbed steadily. Despite targeted government aid such as the CAF APL revaluation and one-off energy checks, many families say these measures are not enough to offset the impact of higher prices. Data from CHB44’s cost-of-living breakdown shows that average monthly household budgets have increased by nearly 10% compared to last year.

The situation has become particularly difficult for those in rural areas, where heating, transport and food expenses tend to be higher. Many expat families who moved to France for a quieter life now find themselves caught between shrinking purchasing power and fixed pensions or modest freelance income.

And the financial pressure isn’t limited to households. According to the Union of Independents (SDI), many small business owners and self-employed workers in France are now earning less than the minimum wage, despite working longer hours and facing rising operating costs. This group — often the backbone of rural and small-town economies — reports being hit by higher taxes, energy bills, and social contributions, while sales have stagnated. Even those who run their own businesses are feeling the same squeeze as salaried families, highlighting a broader economic tension that extends well beyond traditional wage earners.

Economists warn that while inflation has slowed compared to its 2023–2024 peak, structural price increases in essentials such as food and electricity will remain. Without further policy adjustments or stronger consumer protection, both households and small business owners may continue to face a “new normal” of financial fragility.

For a practical breakdown of everyday costs and saving strategies, visit our Cost of Living in France 2025 guide.