5 since January while it increased 12 in euro

The sharp depreciation of the European single currency certainly improves the price competitiveness of exports, but it said imports. This effect is immediate and direct for raw materials, such as oil, whose price is set around the world in dollar. In may, prices of petroleum products increased thus 1.4 a month, with rising 20 over a year, said Insee Friday. Driven by energy, in the consumer price increased by 0.1, with inflation at 1.6 on a year. Result of the impact of the decline of the euro, the price of a barrel of brent dollar fell 4.5 since January, while it increased 12 in euro. This increase is reflected in prices at the pump. But in part only: a litre of super unleaded 95 has increased by 4 since January 1, 1,346 euro TTC average, according to the French Union of petroleum industries. The final price does not reflect all of the exchange rate variation because 60 of the tariff consists of taxes. Moreover, the price adjusts also demand.

Beyond the increase in raw materials which plays on the prices of production, the exchange rate has an impact on the prices of imported services and products. But "the exact effect is more difficult to estimate, indicated the Insee in a study published in June 2008. The impact depends on the behavior of margin of foreign exporters. "A market highly competitive, the latter will tend to align the rates of local or foreign competition and the effect of foreign exchange will be low. "It is particularly the case in common consumer goods sector" indicates the Insee.

High pressure

The case is especially sensitive in the high-tech sector, where most of the manufacturers and components come from Asia. "The depreciation of the euro clearly has a negative impact on our margins in Europe, says Eric Surdej, President of LG Electronics in France. The competitive environment is particularly aggressive and it is difficult to increase the price of surrender to our trading partners. We must first try to optimize the control of our spending and investment. "It said," all new technologies extremely screens will be introduced on markets and invoiced to our partners at higher transfer prices to this we thought initially ", concedes the South Korean group. Same problem Samsung: "we put in place of savings plans, but we also decided to increase the price of our PC and do not exclude to do likewise on some other products," says Philippe Barthelet, Vice President of Samsung France.

If the pressure is high for foreign manufacturers, it is also for distributors. "The rate of contraction of margins of retailers is the largest registered since a little more than two years", note the Markit company in its latest survey on retail trade. This is related to promotional operations, but also to the sharp rise of the purchase price. On the 300 retailers surveyed, "many draw attention to the fact that suppliers have passed the increase in the prices of materials first on their tariffs.

The prices of manufactured goods are therefore adjusted either necessarily or immediately at the rate of Exchange. "There is currently no impact since the entire 2010 season was purchased for a long time", explains on the signs of the clothing Federation. In the end, the Insee estimated that a 10 depreciation of the euro against other currencies results in an increase in inflation of 0.2 to 0.3 per year in the short term.