Inflation on the Rise Again in June 2024
Inflation has resumed its upward trend in June 2024, reaching a level of 7.3% compared to 7.2% the previous month. The drivers of this increase are no surprise: food products (+10.1%) and restaurants, cafes, and hotels (+9.9%).
Certain everyday consumer goods have seen their prices significantly appreciate over the past year. These include:
- Ground coffee (+35%)
- Ovine meats (+24.3%)
- Food oils (+22.0%)
- Condiments (+16.7%)
- Beef (+16.0%)
Manufactured products have also seen their prices increase by 6.9%, driven by:
- Clothing and footwear (+9.4%)
- Household maintenance products (+8.6%)
The same trend is observed in monthly inflation rates. In June 2024, the consumer price index increased by 50 basis points. This is mainly attributed to:
- Food (+0.4%)
- Clothing and footwear (+1.7%)
- Restaurants and hotels (+0.9%)
Underlying inflation (excluding food and energy) has stabilized at 6.8%. This rigidity confirms that it's still too early to lower interest rates. Over the past year, it has only decreased by 40 basis points. As we can see, it will likely remain above 5% for months, if not years, to come. All indicators suggest that we will continue to live in a context of high interest rates beyond 2025. While there will be downward revisions, they will not be significant. If you have a financial plan, consider this hypothesis.