Food inflation: towards a slowdown in price increases in “February, March”

2023-12-11 11:24:13

The French soon to be relieved? The battle of l’inflation is not “Not yet» won, said Sunday December 10 on BFMTV Michel-Edouard Leclercwanting to stand out from recent Minister’s statements of Economy Bruno Le Maire. The latter declared at the end of November that “overall, inflation today has been defeated and it is a real economic success”. «He anticipates”replied the president of the strategic committee of the number one distribution group in France, when asked regarding the minister’s enthusiasm.

Inflation slowed sharply in France in November, to +3.4% over one year according to INSEE following +4,0% in October, thanks in particular to a slowdown in prices in services, energy, and to a lesser extent manufactured products and food. Michel-Edouard Leclerc, on the other hand, is banking on a slowdown in price increases next year which “does not exceed 2.3%» in its brandsand the effects of which should be felt in the wallets of the French as soon as “February March”.

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Why are foreign food brands reluctant to invest in France?

We are negotiating, we are buying for next year, the Leclercs are going as one. We are going to look for negative solutions from large multinational manufacturers to compensate for yesterday’s hyperinflation.

Progress of negotiations

THE commercial negotiations Annual meetings take place each year to set the conditions (purchase price, shelf space, promotional calendar, etc.) under which supermarkets will obtain supplies all year round from their agro-industrial suppliers. These discussions usually conclude on March 1, but the government has decided to move them forward a few weeks hoping for a quicker reflection in the prices on the shelves of reductions in the cost of certain raw materials.

Also questioned regarding a potential takeover by Leclerc of part of the group’s hypermarkets and supermarkets Casino going through great difficulties financial, Mr. Leclerc simply replied that certain “members in the provinces might buy them”. «I don’t really have the right to comment on what’s happening there at the moment since it’s a listed group, a group with social issues”, he added. “We are capable of doing it, is it in our interest to do it?”, he asked himself. “The Casino park is quite dilapidated, they have not reinvested”he judged.

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