France freezes prices for 5,000 products in supermarkets

The authorities of Paris are determined to “finally put an end to the rise in prices.” In the near future there will be urgent negotiations between producers and distributors on food prices.

French Finance Minister Bruno Le Maire announced new measures to “break the ‘vicious cycle’ of upward price spirals” on supermarket shelves. Negotiations on this topic, which officially continue from December to March, have already begun to bear fruit: an agreement was reached to stop the ongoing increase in prices for basic foodstuffs. This is the first and probably the most important decision made by manufacturers and distributors in France, agreed with the Ministry of Finance.

The decision will “significantly reduce the prices of basic foodstuffs and essentials sold on the shelves of supermarkets”, as Lemaire stressed, speaking on the French TV channel. Price stabilization will be implemented from January 2024 because, as the minister explained, “we need to pass a new law.”

The prices of 5,000 basic foodstuffs and other consumer goods, as Bruno Lemaire explained, “should no longer move up, only down.” The minister added that inspections by the Directorate General for Competition, Consumer Protection and Fraud Prevention (DGCCRF) have already begun. In other words, today’s prices will become the “ceiling”.

“This measure is much better and more effective than the 1,500 low-price basket that is still in place today.“, – said the minister. Manufacturers and distributors are already negotiating to determine the exact list of 5,000 products. Announcements will be made gradually over the coming weeks.

Lemaire’s TV interview took place shortly after the announcement by France’s official statistical office INSEE data on the course of inflation in the country. The figures showed that the consumer price index rose to 4.8% (year-on-year) in August, compared with 4.3% in July. Experts explain the stoppage of the de-escalation rate of the index by the fact that on July 31 the period of summer sales ended in France.

So-called “food inflation”, which in this case concerns agricultural producers and large retail groups, continued its downward trend, dropping for the fifth consecutive month in August to 11.1% from 12.7% in July year on year.

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