Why the real inflation is always lower than what the French feel

In France, consumer prices rose by 3.4% from October 2025 to October 2026, according to Insee. However, this figure does not align with consumers' experiences, as many struggle financially. This discrepancy between statistical indicators and personal perceptions is a known phenomenon rooted in psychology. A 2025 survey by the Banque de France revealed that people feel prices rise faster than they actually do and perceive price drops as less significant. This distortion is asymmetrical, influenced by the brain's aversion to losses, as explained by economist Vincent Bignon.