According to data released by market research group Nielsen, France's FMCG industry experienced a growth of 2% in value during the month of April.
Nielsen say that it is an increase in footfall and the volume of online spending driving the growth, as opposed to price hikes.
The research looked at the trading period between 23 march and 20 April, and compounded a 0.6% increase in FMCG sales during the previous month.
So far this year, FMCG sales have risen 1.8% at stores, while there has also been a 1.5% increase in online sales.
Falling FMCG prices in French hypermarkets and supermarkets may be leading to the rise in sales volumes. Since Christmas, Leclerc, Auchan and Casino have responded to market-leader Carrefour's price cuts in late 2013 with cuts of their own.
"As Carrefour regains market share, Leclerc and Auchan have become more restless," Yves Marin, senior manager at the Kurt Salmon consultancy told Reuters, signalling the beginning of a price war.
"The price war is continuing. We will not be the first ones to end it," Phillipe Courbois, head of client relations for Auchan France, told Reuters by phone.
© 2014 - European Supermarket Magazine by Enda Dowling
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