Insee Analyses · December 2022 · n° 78

Between January 2021 and June 2022, the rise in energy prices led to a loss of purchasing power, despite the implementation of exceptional measures

Between January 2021 and June 2022, the purchasing power of households was affected by the rise in energy prices (electricity, gas, fuel oil and motor fuels). Several measures have been implemented to contain the price increase, such as the « tariff shield » and the 15-centime per liter tax-free discount at the fuel pump, or to support household income, such as the exceptional energy voucher bonus and the exceptional inflation allowance. Assuming that consumption was unchanged, however, all of this aid did not compensate for the decline in household disposable income caused by the rise in energy prices. According to the Ines microsimulation model, over the one and a half year period between the beginning of 2021 and mid-2022, average disposable income, including these aids and adjusted for energy expenses, was 720 euros lower than it would have been if prices had remained at 2020 levels, i.e. -1.3%. All households were affected, but even more so those living outside urban units, as they consume more fuel. Low-income households received the highest amounts of aid, but they remained the most affected in proportion to their income, with an average loss of disposable income adjusted for energy expenses of -1.6% for the poorest 30%, compared with -1.2% for the wealthiest 30%.