In 2018, inequalities in standards of living increased

In 2018, in Metropolitan France, the median standard of living was €21,250 per year, 0.3% higher than in 2017 in constant euros. It has continued its slow progression over the last five years, after having decreased following the 2008 economic crisis. The poorest 10% had a living standard below €11,210. The wealthiest 10% had a living standard at least 3.5 times higher, above €39,130.

In 2018, standards of living evolve in contrasting ways. The standard of living of the most well-off households rose sharply. They have benefited from an increase in assets income, due to the significant increase in dividends received in a context of taxation that provides greater incentives to distribute them rather than capitalizing them, and from a rise in earned income. The poorest households income declined, mainly because of a decrease in housing benefits.

Inequalities in living standards increased sharply in 2018, but do not exceeded the high point in 2011: the Gini index was 0.298 in 2018, after 0.289 in 2017.

In 2018, 9.3 million people were living below the monetary poverty threshold, which was 1,063 euros per month. The poverty rate was 14.8% in 2018. It increased by 0.7 percentage points over the year. Poverty gap was stable at 19.6% in 2018.

The decrease in housing benefits due to the "solidarity rent reduction" reform explained a large part of the decrease in modest households income and the increase in the poverty rate. This reduction lowered living standards as they are normally measured, even if it has been compensated by rent reductions in social sector housing, and therefore in the expenditures of concerned households.