How is inflation calculated?

business / By

Barthelemy Philippe

In 2022, the word inflation was on everyone’s lips. Specialists have also estimated it at 6.2% last November. But concretely, what is it, who calculates it and on what basis? Europe 1 explains the specifics of the calculation of inflation.

Inflation. It was the word of the year 2022. Last November, it was at 6.2% in France. Figures that could deflate, according to many economists. But what exactly is inflation? How do we measure it? Europe 1 explains everything to you.

INSEE at the center of the process

In France, it is INSEE (National Institute of Statistics and Economic Studies) which calculates the consumer price index every month. To do this, the institute’s investigators collect all the prices of goods and services at the various points of sale. These are obviously the prices in supermarkets for food and hygiene products.

But these are also the prices in companies in general, as well as those of energy, electricity, gas or even gasoline. The price index is then compared by INSEE with that of the previous year and this comparison can lead to inflation, ie a general rise in prices. This also results in a decline in purchasing power, that is to say that one buys fewer goods or services with the same defined income.