Why Everything Still Feels Expensive in France — Even as Inflation Falls

On paper, inflation in France is easing. Official figures show price rises slowing, energy costs falling, and the worst of the post-crisis surge apparently behind us. Yet for many households, everyday life still feels just as tight — if not tighter — than it did a year ago.

This disconnect between statistics and lived reality is becoming one of the defining economic frustrations of daily life in France. So why does it still feel so expensive to live here, even when inflation is said to be under control?

When Lower Inflation Doesn’t Mean Lower Prices

One of the most misunderstood aspects of inflation is what “slowing” actually means. Inflation falling does not mean prices are coming down — only that they are rising more slowly than before.

Food, rent, insurance, and services remain at historically high levels after several years of sharp increases. Even modest monthly expenses now start from a much higher baseline than households were used to before 2021.

In practice, this means families are paying less extra than last year — but still far more than they did just a few years ago.

The Hidden Costs We Feel Every Day

Many of the price pressures weighing on households are not always captured clearly in headline inflation figures:

Insurance premiums (home, car, health) continue to rise
Bank fees and service charges are increasing quietly
Energy subscriptions remain high despite falling wholesale prices
Food shrinkflation means paying the same for less
Local taxes and charges are creeping upward

Individually, these increases may seem manageable. Combined, they steadily erode purchasing power month after month.

Winter Makes Everything Worse

Seasonality plays a major role in how people experience costs — and winter is when financial pressure is most acute.

Heating bills, higher food spending, transport disruptions, and seasonal health expenses all hit at once. For many households, winter is the period when budgets tip from “tight” into “unsustainable,” even if annual inflation figures look reassuring.

This helps explain why dissatisfaction remains high despite improving macroeconomic indicators.

Who Feels the Pressure Most?

Not all households experience rising costs in the same way. The strain is most visible among:

Low- and middle-income households
Retirees on fixed pensions
Families with children
Expats paid in foreign currencies, especially when exchange rates move unfavourably

For these groups, even small price increases have an outsized impact on daily choices and financial security.

How French Households Are Adapting

Rather than cutting back on essentials, many households are adjusting around the edges:

Delaying large purchases
Switching energy and insurance providers
Reducing discretionary spending
Saving less — or dipping into savings earlier each month

These behaviours don’t always show up in economic data, but they strongly influence how people feel about the economy.

READ ALSO: How to Save Money Living in France: 25 Practical Tips

What to Watch in the Months Ahead

Looking forward, several factors will determine whether daily life starts to feel more affordable:

Further energy price adjustments in spring
Bank fee changes planned for 2026
Insurance repricing cycles
Wage negotiations and benefit adjustments

For now, the gap between official inflation figures and everyday experience remains wide — and that gap is shaping how people in France perceive their economic reality.