Is inflation forcing the French to dip into their livret A?

In October, the French dipped more in their woolen stockings than they put money aside. The collection of the Livret A is largely negative in October with -1.1 billion euros for all networks.

So is this a disaster and the start of the devastating effects of inflation on the purchasing power of our households?

Not so sure actually.

Indeed, the month of October is traditionally a bad month for Book A because it is a time of spending, not austerity. People spend money on purchases before school, to pay property taxes, or the rest of the housing taxes, not to mention the catch-up taxes that have to be paid.

The outflow of the Livret A in October is therefore a well-known phenomenon and this year was somewhat less strong than normal and one of the weakest in the last ten years”.

Now that the increase in the fee rate is precisely linked to the rise in the key ECB interest rates itself, which are rising due to the increase in inflation, the livret A could experience even stronger annual collection than expected.

Finally, not only can we not say at the moment that inflation is driving the French to dive into their woolen stockings, but paradoxically it could even be the opposite. The French will save more just in case and because they are cautious. It’s quite a good idea. Caution is the mother of safety.

Charles SANNAT

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Source Le Figaro.fr here


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