Flash estimates of poverty rate and inequality indicators In 2018, poverty rate and inequalities are estimated to increase

According to the microsimulation-based forecasting method, equivalised disposable income inequalities are estimated to increase in 2018. The Gini coefficient is expected to rise by 0,005 to stand at 0,294 and the Quintile Share Ratio (QSR) ratio is estimated to increase by 0,1 point to 4,4. The interdecile ratio is expected to be almost stable at 3,5. The rise in inequalities would mainly reflect the strong surge in capital income, mostly benefiting the wealthiest, which are now submitted to a single flat-rate withholding tax (PFU).

Poverty rate is estimated to increase by 0,6 point in 2018, reaching 14.7% of the population. This rise would partly be due to the decrease in housing allowances in the low-rent social housing (HLM) sector in 2018. There has been an equivalent decrease in rents, which is not taken into account in the definition of disposable income. The effect of the reduction in housing allowance in the HLM sector once canceled, the poverty rate increase would be dimmed (+0,2 point).