LEP: The interest rate of the popular savings book divided by three on August 1?

Inflation remains at a level less than 1% in May. What make fear a sharp drop in LEP yield on August 1. But how far can it really tumble?

The cleaver is getting closer. The Popular Savings Booklet (LEP) will see its rate well pruned on August 1. In question: inflation always very contained in May, and which still reflements. Indeed, according to provisional data published by INSEE this Tuesday, May 27, prices have only increased by 0.7% This month over one year, after +0.8% in April, +0.7% in March and February, and +1.6% in January.

However, this is the average inflation outside tobacco between January and June 2025 which will be used to calculate the new LEP rate, applicable to August 1. With five months out of six now known, the provisional average is just 0.9%. Also, if the inflation of June remains in this same area, the theoretical rate of LEP could fall Under 1% this summerand until February 1, 2026, more than three times less than its current remuneration (3.5%).

A floor rate at 2.2 %… or more

In reality, such a stroke of planer is impossible, due to the rules that supervise the levels of regulated savings booklets. As provides by a decree of January 27, 2021, the yield of the LEP can never be lower than that of the booklet A increased by 0.5 points. However, if the latter will also be reduced on August 1, its future rate should amortize the fall of the LEP. By strictly applying its calculation formula, the return of the booklet A would indeed fall to 1.7%, against 2.4% currently. A lower since February 1, 2022 (1%), but which would maintain the LEP rate at 2.2%.

And that’s not all. The Governor of the Banque de France and the Minister of Economy also have a room for maneuver: they can decide to derogate from the formula and propose a higher rate. This was the case in the last four revisions, especially last February, when the LEP had been maintained at 3.5% while the strict average of inflation over the past six months led to 2.9%. One way of not penalizing the 12.5 million holders of this savings product reserved for modest households, and which has already experienced more outings than collection over the first four months of the year (-1.37 billion euros) due in particular to the erosion of its rate.