France’s Le Maire wants to break food price inflation “spiral” by autumn

By: Trademagazin editor Date: 2023. 05. 04. 09:10

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Finance Minister Bruno Le Maire said on May 3 that he would meet with retailers and suppliers next week to discuss ways to break the food price inflation “spiral” by autumn, which is a major concern for cash-strapped consumers.

French food retailers and their suppliers agreed a 10% average increase in prices in annual negotiations in March, which both sides said was necessary to cover higher production costs.

Le Maire has since repeatedly called on both sides to reopen negotiations to ensure that a recent fall in global wholesale food prices is passed on to consumers. Le Maire has even threatened to take action if they do not respond to his calls.

France’s headline inflation rate rose to 5.9% in April from 5.7% in March. The French inflation level stood at 6.9%, as measured by a European Union-harmonised consumer price index.

Bank of France governor and European Central Bank member Francois Villeroy de Galhau said last month he expected food price inflation to start easing in the second half of this year.

Reuters