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LIVING IN FRANCE

Food, fuel and transport: Which prices will rise in France in 2023?

Retail bosses have warned of a 'tsunami' of rising prices in France in 2023 as inflation is set to spiral when government price protections end - here's what we know about the items that will increase in price from January.

Published: 25 November 2022 12:11 CET
Updated: 7 December 2022 08:51 CET
Food, fuel and transport: Which prices will rise in France in 2023?
Food prices are predicted to rise sharply in 2023. Photo by Christophe SIMON / AFP

Electricity and gas bills

French households have so far been extremely fortunate compared to their European neighbours, and have seen minimal or no rises to their utility bills. This is because the government imposed a price freeze on gas prices and a maximum four percent rise on electricity prices, but both of these measures expire at the end of this year.

From January, gas bills can rise by a maximum of 15 percent and from February electricity bills can rise by a maximum of 15 percent. For the average household, this will represent an extra €20 a month. 

EXPLAINED What your French energy bills will look like in 2023

Petrol prices

The government is also currently helping out motorists with fuel prices using the fuel rebate – which is applied at the pump and results in lower costs to motorists filling up their cars. In mid November this fell from 35 cents per litre to 10 cents a litre, and will disappear entirely at the end of the year.

This will result in an extra €5 for the average driver to fill their car compared to the December price, and an extra €17.50 compared to the early November price. 

From January there will be €100 grants available for motorists on a low income who need their car for work – full details here.

OPINION An inflation ‘tsunami’ is about to hit France

Driving will also become more expensive in France for those taking toll-roads. The French ministry of transport announced that in February 2023, toll fees on France’s main motorways will increase by an average of 4.75 percent. 

READ MORE: Péage: Toll rates for motorists in France to increase in 2023

Food prices

The price of food has already risen significantly since 2020, but supermarket boss Michel-Edouard Leclerc (head of the E.Leclerc chain) has warned of a “tsunami” of price rises in 2023.

This is largely due to suppliers increasing prices, he said, after trying not to pass on price rises to customers in 2022, so is likely to affect all supermarket chains.

Leclerc himself listed some of the predicted rises with preserved fruit and vegetables rising by around 20 percent, animal products by 15 percent and coffee by 10 percent.

Rising prices from food suppliers will also have a likely knock-on effect on the prices at restaurants and cafés.

Train tickets 

Train tickets are also set to rise in 2023, to cover rising utility costs for the company, although the transport minister requested that the state-owned SNCF apply a ‘price shield’ to rises. 

The average price rise will be five percent, applied on TGV services and regional trains. The price rises will come into effect “in 2023” with no exact start date given. 

Public transport users in Paris are also likely to see price rises, with the monthly Navigo pass set to rise to either €80 or €90. Individual tickets were also expected to rise from €1.90 to €2.30. As for the 10-ticket carnet, the price could rise from to €20.30. This package is currently available at €16.90 for paper tickets, and €14.90 when purchased with Navigo easy or on a mobile phone.

The final price increases, to be applied starting in 2023, are still being negotiated between local and national authorities.

READ MORE: Paris public transport ticket prices set to rise in 2023

Clothes 

The price of clothing around Europe has already risen and is projected to rise by between five and 20 percent during the final months of 2022 and start of 2023, according to the Union des industries textiles (textile industry union).

This is related to the rising price of oil since Russia’s invasion of Ukraine – oil is needed to make certain fabrics like polyester while rising fuel prices also have an effect, since 96 percent of clothes on sale in France are made abroad. 

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For members

TAXES

Tax benefits of having children in France

Parents in France benefit from a number of tax deductions, including for childcare or school costs, accommodation or even alimony payments, some of which can continue even when your kids are adults. Here's a look at some of the tax breaks that you may be entitled to.

Published: 24 April 2024 15:23 CEST
Tax benefits of having children in France

Having children in France is just as brilliantly difficult and gloriously maddening as it is anywhere in the world. But it can also be a major money-saver.

A not-uncommon topic of conversation is the generous support for parents. Three is the magic number of children for a family, for tax purposes – though that has to be offset against the realities of actually parenting three children.

READ ALSO Family-centred society: What it’s really like being a parent in France

We’ll leave that last calculation to you, and just deal with the French tax system, which is rather less complex.

So as tax declarations for 2024 are now open, here are the tax breaks you get for being a parent in France.

READ ALSO The 2024 French tax guide

Childcare

Let’s start with little kids, when you’re likely to be paying out for childcare.

Parents of children under the age of 6 on January 1st of any given tax year can obtain a tax credit towards the cost of childcare. This can either go towards crèche fees or the cost of an approved childminder or nanny.

The child concerned must be under 6 years of age on January 1st of the tax year. The credit is equal to 50 percent of the sums paid on childcare, up to a limit of €3,500 per child per year.

You must declare the net annual salary you pay any childminder/nanny, and any social security contributions.

School

A child in full-time education who does not have an employment contract entitles parents to a tax reduction of €61 if they’re in collège, €153 if they’re in lycée, and €183 if they’re in higher education, as long as they’re part of their parents’ tax household.

READ ALSO What you need to know if your child is starting school in France

In addition to the tax breaks, parents of school-age children are also entitled to various types of financial aid to help cover school costs including the ‘back to school’ bonus that is intended to cover those September costs for new uniform, stationery etc.

Divorce

If you’re divorced, then alimony payments may be tax deductible, depending on your childcare arrangements. The amount varies according to the financial situation of the parent paying the support. On the other hand, the cost of maintaining visitation rights, such as train tickets, are not tax-deductible. 

If parents have agreed shared custody of any children, any alimony payments are not deductible, because each parent is entitled to an increased tax share of their individual household.

Adult children

You might think that tax breaks are only available when your children are still young, but even when they reach the age of 18 there are still some tax benefits available.

Accommodation for adult children

If your adult child – that is a child over the age of 18 – lives with you and is attached to your tax household, you can deduct a lump sum of €3,968 from your income on your declaration for 2023 earnings, which is due now. According to the tax authorities, this amount corresponds to the cost of board and lodging.

“When the child’s accommodation covers only a fraction of the year, this sum must be reduced in proportion to the number of months concerned, with any month begun being deducted. Even if it is a lump sum, the amount deducted must be declared by the beneficiary”, the tax authorities’ website states.

Financial aid for children with no income

Parents who provide monthly financial assistance to adult children up to the age of 25 living on their own can declare the sums paid up to a limit of €6,368 per year. This aid is fully deductible. 

“You must keep all receipts for expenses, as they may be requested by the tax authorities. If the parents are taxed separately, each parent can deduct expenses up to this limit,” the tax office website says.

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