Prices are rising, the minimum wage too. Inflation accelerated further to 5.8% over one year in June, INSEE said on Wednesday, confirming its first estimate published at the end of June. This price increase will lead to a further automatic revaluation of the Smic by 2.01% on 1 August.
The rise in prices (excluding tobacco) between March and June for the poorest 20% of households reached 2.01%, this indicator serving as the basis for triggering automatic revaluations of the Smic, specified the National Institute of statistics at AFP.
Serial increases
This is the fourth increase in the Smic in less than a year, the last having taken place on May 1, with an increase of 2.65%. For a full-time worker, the monthly minimum wage should thus increase by around 26 euros net to reach around 1,328 euros.
In addition to the annual revaluation of January 1, the Smic is indeed mechanically increased during the year by the amount of inflation for the 20% of households with the lowest incomes, if this exceeds 2% compared to at the last increase.
Record inflation
In June, the rise in prices was driven by the further acceleration in energy prices (+33.1% year on year after +27.8% in May), food (+5.8% after +4.3%) and to a lesser extent service prices (+3.3% after +3.2%), details INSEE. Conversely, the prices of manufactured products slowed (+2.5% after +3%).
Core inflation (excluding energy and food) remained stable over one year at +3.7%, while the harmonized consumer price index (HICP), which serves as a basis for comparison to the European level, is up 6.5% year on year, after +5.8% in May.