France in Focus: Money & Society — Weekly Economic Snapshot

A weekly overview of France’s financial and social trends — from inflation and rising bank fees to gold prices and small business struggles.

France’s economy enters mid-November under the shadow of stubborn inflation and rising household tension. While national figures show only a slight uptick in consumer prices, the reality for many families — and small business owners — is far less comfortable. Food prices are once again climbing, energy costs remain unpredictable, and everyday essentials are squeezing budgets across the country.

Inflation Returns to the Table

According to INSEE’s latest data, consumer prices rose by just over 1% in October. Officials highlight cheaper energy, but for French households, groceries tell a different story. As reported earlier this week, one in three homes still struggle to pay their energy bills — a contradiction that underscores how national averages often hide regional and income-based gaps.

Rising food costs, driven by transport and packaging expenses, continue to put pressure on lower-income families. While supermarkets have frozen prices on certain essentials, the relief is temporary, and consumer associations warn of further increases before the end of the year.

Gold Shines as Investors Seek Stability

The surge in demand for precious metals is another reflection of household unease. In Maine-et-Loire, even small savers are turning to bullion, convinced that “it will never be seized.” Our recent report from the region found a clear trend: distrust in banks and long-term savings products is fuelling a quiet return to tangible assets.

This flight to safety mirrors a wider European sentiment — nervous investors seeking protection against financial instability. The price of gold has climbed steadily since late summer, signalling both caution and opportunity in uncertain times.

Banking and Transfers: The Hidden Costs

Households also face rising fees in the financial sector. As detailed in our banking report, account maintenance and card fees are set to increase again in 2025. Meanwhile, the recent change to off-peak transfer timings caught many consumers by surprise, showing how small technical shifts can have big effects on daily cash flow.

For couples and shared households, free joint accounts remain a good workaround. Several institutions — especially online banks — continue to offer fee-free joint options that help limit the impact of service charges.

Small Business Under Pressure

According to the Union of Independents (SDI), nearly half of France’s small business owners now earn less than the minimum wage — the worst post-summer period since 2009. Between falling consumer spending and higher energy costs, the margin for survival is narrowing. Calls for targeted government relief are growing louder, particularly in rural regions.

What to Watch Next Week

INSEE’s updated inflation data for November mid-month.
Announcements on winter energy aid and heating allowances.
Gold’s reaction to central bank statements on rates and growth.

For now, the picture remains mixed: cautious optimism among investors, financial fatigue among households, and a lingering sense that France’s economy is balancing on a tightrope between resilience and fragility.