France's inflation hits 3.1% in 2026, with stagnant wages and record public spending. The video game industry struggles amid high taxes and regulations.
Inflation climbs in France
The inflation rate in France reached 3.1% in September 2026, the highest in nearly three years, according to INSEE, while wages remain stagnant. This marks a return to rising living costs after a period of relative stability.Public spending and tax policies
This increase is partly a direct consequence of a budgetary policy that has been going in circles for years, with the State spending too much and borrowing too much, leading to rising prices for households. Meanwhile, the National Assembly is fiercely fighting to maintain tax breaks for retirees, rather than reforming state spending or cutting into the 57% of public spending in the GDP, an absolute record among major developed economies.Rising property taxes
The property tax has almost doubled over twenty years, according to Ouest-France. Inflation erodes wages, businesses are suffering, and a short majority of the French still support the adoption of the 2027 budget "despite its flaws," according to a survey by Échos.French video game industry struggles
In the video game industry, half of the French companies in the sector ended the year 2025 in the red. This collapse is not solely explained by a global conjunctural crisis. It is also the cost of labor, the heaviest social charges in Europe, administrative complexity that suffocates SMEs, and a regulation that accumulates layer after layer.Industry challenges reflect broader issues
An industry actor told Échos, "It is impossible to say if we have reached the bottom." This sector is seen as a mirror of what is happening to the entire French creative economy: attracting talents, then discouraging them with contributions and forms.Tax burden and spending contrast
France's tax burden is already among the highest in the world, but it is a chronic excess of spending that no one dares to cut. Neighbors in Germany have managed to make the opposite choice, with Friedrich Merz demanding cuts in European spending. Here, Macron wants to increase revenues, highlighting a contrast in approaches.
