French households shift savings amid inflation perception gap

French household financial behaviors are shifting due to a disconnect between measured inflation and perceived inflation. While measured inflation has shown a progressive slowdown, a survey conducted by the Banque de France and CSA between November and December 2025 indicates that the perception of rising prices remains high among households.

This perceptual bias is influencing daily budgeting, leading consumers to monitor prices more closely and postpone or cancel certain expenditures. Consequently, there is a trend toward reducing discretionary spending while potentially overlooking necessary fixed costs.

In the first quarter of 2026, data from Le Cercle de l’Épargne shows a reallocation of capital. Regulated savings accounts have seen net withdrawals as households move funds toward life insurance, retirement savings, and equity investments.