The proposed measure to abolish two public holidays is causing reactions in France.
France’s largest business association Medef (an affiliate of SEV), and other unions and unions have many reservations about the measure, pointing out that such an option would additionally burden businesses (by 4.2 billion euros), while employees would not receive any substantial benefit.
Meanwhile, the latest data published by a survey by the National Center for Statistics and Economic Studies of France, show that the Consumer Price Index in the country increased by 0.2% in July and by 1% on an annual basis, confirming the stabilization of inflation at low levels.
The improvement in the Consumer Price Index in July is mainly attributed to the increase in prices of services, with particular emphasis on seasonal increases in the transport and hospitality sectors.
In more detail, as shown by the relevant study, the main driver of this increase was the improvement in prices in the services sector, which increased by 1.3% in July (compared to an increase of 0.6% in June) and by 2.5% on an annual basis. In particular, prices in the transport sector increased by 10.2%, mainly due to the increase by 7.6% in air ticket prices and less due to road transport prices (an increase of 1.9%). On the contrary, prices in railway tickets showed a slowdown (+0.9% compared to +3.4%). Hospitality services increased by 11.7% on a monthly basis, at a noticeably slower pace than last June, while prices increased by 4.6% on an annual basis. As for other services (catering, entertainment services, insurance), they also continued to contribute to the improvement of the Consumer Price Index. In addition, according to the study, food prices accelerated for the seventh consecutive month in July by 1.6%.
The information comes from the Office of Economic and Commercial Affairs in Paris.
