In October 2018, gains from social tax reforms offset by higher oil prices

Between January and October 2018, household purchasing power was affected by the rise in crude oil prices as well as by several social and fiscal measures: an increase in the domestic consumption tax on energy products (TICPE) and a switch from social security contributions to the CSG. In total, in October 2018, the rise in oil prices more than offset the gain due to the shift in social security contributions to the CSG. The standard of living (adjusted for fuel and heating oil expenditure) is on average 0.4% lower than it would have been in the absence of these developments. Employed households are slightly better off (+0.2% on average), while retired households are worse off (–2.0% on average). The combined effects of these developments are more unfavourable in rural areas and small urban units.