01 July 2008 - 21H33
- inflation - prices

Wages crawl up as inflation booms
Prices of commodities and services are reviewed on July 1, as are France's minimum and public sector wages. Scroll down to read the sectors affected by the inflation hike.

Minimum wage: a long-awaited raise

 

According to a public decree published in France’s Official Bulletin, minimum wage is set to increase by 0.9%. As a result, gross hourly minimum wage will rise to 8.71 euros and its monthly equivalent (for a 35-hour week) to 1,321.02 euros.

 

However, minimum welfare benefits, which were raised on January 1, will not benefit from a further increase. Thus, monthly income support for a single unemployed person with no children will remain on 447.91 euros.

 

Meanwhile, another decree published in the Official Bulletin of June 28 specifies that the gross monthly minimum wage for public sector employees will rise to 1,321.51 euros.

 

Unemployment benefits: rising below inflation

 

The 1.7 million unemployed supported by the France’s unemployment agency will see their benefits increase by 2.5%, though this remains below French inflation in 2008, estimated at 3% over the first semester.

Train fares set to rise

 

France’s national railway operator, SNCF, has announced a fare rise on its regional and inter-city routes. Standard prices for second-class tickets will go up by between 10 cents and 2.20 euros depending on the route.

 

Discount cards for children and elderly travelers will cost an extra euro for a total of 70 and 56 euros respectively, while prices for the “Escapades” and the 12-to-25-year-old discount cards remain unchanged.

 

Meanwhile, France’s prized high-speed TGV routes are set for an increase next January.

 

Mild increases in the Paris region

 

The price of a monthly “Carte Orange” transport ticket for central Paris (zones 1-2) is set at 55.10 euros, up from 53.50, while the standard single ticket goes up 1 cent to 1.69 euros.

 

Gas: “no rise in July”

 

The government’s spokesperson Luc Chatel said French households would see no new increase in the price of gas in July, thereby denying information released by “Le Parisien-Aujourd’hui en France”. According to the French daily, the state-owned Gaz de France was planning to ask the government for a further 9.5% price hike starting in July, after previous increases in January and April.

 

The article suggested a new rise would be justified by rocketing oil costs (up 40% over the last six months), as French gas imports are indexed on the price of crude oil.
 

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