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In the face of rising energy prices, French households saw their disposable income fall by an average of 1.3 percent between January 2021 and June 2022, despite government measures to help maintain purchasing power, according to a new report by the National Institute of Statistics and Economic Research (Insee). That's an average loss of 720 euros per household.

According to Le Figaro, the French government wants to help the French through the tough times of high inflation, so it has implemented an energy price protection mechanism, offering fuel discounts at gas stations, special energy checks and inflation allowances.

Despite these measures, French household disposable income is still falling. The report by the National Institute for Statistics and Economic Research said people in the countryside were hit harder by rising energy prices than those in cities because they drove more in private cars and spent more on heating their homes. The report explains that even with government assistance, rural residents' disposable income fell by an average of 1.7 percent, or 910 euros per household, while in cities with a population of less than 20,000, disposable income fell by 1.6 percent, or 780 euros per household. Parisians saw their disposable income fall by an average of 0.8 percent, or 580 euros per household.

The report also noted that the loss of purchasing power was greater for lower-income households because energy costs accounted for a higher proportion of disposable income. For the poorest 10 per cent of French households, 14 per cent of disposable income is spent on energy, while for the richest 10 per cent, it is 5 per cent.