French supermarkets to create 3-month budget range to help with inflation
French supermarkets are to create an extra 'budget' range of low-cost items for the next three months, after coming to an agreement with the government for a package to help consumers deal with inflation.
France's finance minister, Bruno Le Maire announced the anti-inflation plan to help consumers with the cost of groceries after the government created agreements with supermarkets to set "the lowest possible prices on a number of every day goods".
The scheme - which will last until June - involves supermarkets applying special discounts to hundreds of everyday items, and agreeing to take a cut in profits for a period of one quarter. The operation is expected to cost "several hundred million euros", according to Le Maire.
The products concerned will be "freely chosen by the distributors", the finance minister explained, and as such prices may vary based on store or geographic location.
The CEO of Carrefour, Alexandre Bompard, told Le Parisien that products that are part of the anti-inflation scheme will be labelled with a multicoloured logo.
Some supermarkets have already taken matters into their own plans - for example, Système U launched a similar anti-inflation plan for its stores in early February with around 500 items marked down, while others stores heave created ranged of 150 to 500 everyday items at special low prices.
The announcement comes just a few days after manufacturers and distributors for food and consumer products at major chain stores finished talks surrounding price increases for the coming months. Prices have been on the rise in French supermarkets. As for the month of February 2023, the research organisation INSEE estimates that food prices rose at least 14.5 percent when compared with February 2022.
Economic experts expect inflation to peak later this spring.
According to Le Maire, at the end of the anti-inflation plan the government will review the situation with food distributors to see if there is any possibility to renegotiate prices once more.
The French government also intends to offer a "food voucher" for low-income households in the coming months, which will be available at a local level, according to the finance minister.
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France's finance minister, Bruno Le Maire announced the anti-inflation plan to help consumers with the cost of groceries after the government created agreements with supermarkets to set "the lowest possible prices on a number of every day goods".
The scheme - which will last until June - involves supermarkets applying special discounts to hundreds of everyday items, and agreeing to take a cut in profits for a period of one quarter. The operation is expected to cost "several hundred million euros", according to Le Maire.
The products concerned will be "freely chosen by the distributors", the finance minister explained, and as such prices may vary based on store or geographic location.
The CEO of Carrefour, Alexandre Bompard, told Le Parisien that products that are part of the anti-inflation scheme will be labelled with a multicoloured logo.
Some supermarkets have already taken matters into their own plans - for example, Système U launched a similar anti-inflation plan for its stores in early February with around 500 items marked down, while others stores heave created ranged of 150 to 500 everyday items at special low prices.
The announcement comes just a few days after manufacturers and distributors for food and consumer products at major chain stores finished talks surrounding price increases for the coming months. Prices have been on the rise in French supermarkets. As for the month of February 2023, the research organisation INSEE estimates that food prices rose at least 14.5 percent when compared with February 2022.
Economic experts expect inflation to peak later this spring.
According to Le Maire, at the end of the anti-inflation plan the government will review the situation with food distributors to see if there is any possibility to renegotiate prices once more.
The French government also intends to offer a "food voucher" for low-income households in the coming months, which will be available at a local level, according to the finance minister.
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