Inflation in France reached 2.1% year-over-year in July, up from 1.8% in June, according to final figures from INSEE published on August 14. This acceleration was primarily driven by the energy sector, where prices soared 12.6% annually, with particularly sharp increases for gas (+17.7%) and petroleum products (+20.7%). Services also contributed to this trend, rising by 2.2%, led by accommodation and communications. In this context, the Livret A savings account, whose nominal rate dropped to 1.7% since August 1, now shows a negative real yield, gradually eroding the purchasing power of savers holding funds in this popular savings product.
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