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French Finance Minister Bruno Le Maire and retailers have reached an agreement with major supermarket chains that seeks to help citizens cope with food inflation, which is well above 14% per year.
With galloping food inflation and increasing social pressure over the controversial pension reform, the French government of Emmanuel Macron presented an agreement with the large supermarket chains on Monday, March 6, to reduce the prices of some basic products.
It is an agreement with which the distributors agreed to reduce their margins for at least three months in a basket of products that they will choose and that will carry the common label “anti-inflation quarter”.
To protect the French against food inflation, we have found this morning an agreement with the big distribution: she is engaged in meeting an « anti-inflation quarter », starting on the month of March.
Qu’est-ce que cela signifie ? ↓
— Bruno Le Maire (@BrunoLeMaire) March 6, 2023
Finance Minister Bruno Le Maire explained that “it will be a massive, effective and protective measure, which will guarantee the lowest possible price on a series of items, which will be freely chosen by distributors, taking the lowest price level possible from the retailers’ margins.
In June, when the deadline is up, retailers and the government will reassess the situation and may ask big suppliers of consumer goods to renegotiate prices, he added.
Inflation in France, among the lowest in the euro zone
Last February, the average inflation of the 20 countries that make up the euro zone stood at 8.5%, decelerating for the fourth consecutive month. However, in France, although the index is below average, it accelerated to 7.2%, according to the local statistics agency.
On Sunday March 5, Carrefour, Europe’s largest food retailer, preempted the government announcement by saying it would offer its own selection of 200 low-cost items.
Its rival Casino also assured on Monday that it would offer a selection of 500 low-cost items for less than one euro from March 15 with prices frozen for three months.
With EFE, Reuters and AP
