Food price inflation in France will likely fall significantly starting in January, following the government's plan to bring forward annual price negotiations between retailers and consumer goods companies initially planned for next year, Carrefour chairman and chief executive Alexandre Bompard has said.
"Starting in January, we should see the level of inflation come down significantly," he said, speaking on French television channel BFM TV.
Food Inflation Remaining High
Bompard said that he expected food price inflation to come down well below 10% to closer to 5%. August data showed food inflation – though easing for the fifth consecutive month from a peak earlier this year – is still running at 11.1%, nearly twice the overall inflation rate.
Bompard had warned that high prices were forcing consumers to cut back massively on essential goods.
Retailers and consumer goods companies in France have been trading blame over who is responsible for the increase in prices in supermarkets even as the cost of raw materials has been falling in recent months.
The Carrefour executive added that he expected food inflation to remain higher in coming years than levels over past decades of between zero and 1% due to climate and geopolitical factors.
"The time of zero food inflation, I believe, is behind us," he said.
Cutting Essential Purchases
Last week, Bompard issued a cautionary message about a significant reduction in consumer purchases of essential items due to soaring prices. He has appealed to the French authorities to consider postponing a law that restricts the extent of promotional offerings allowed by retailers.
In a meeting with finance minister Bruno Le Maire last week, Bompard said that he would request a one-year suspension of the Descrozailles law, which places limitations on promotions for beauty, hygiene, and personal care products.
Read More: French Govt Seeking To Double List Of Groceries Subject To Price Cuts: Source
Additional reporting by ESM
