PARIS, Aug 31 Prices for 5,000 essential commodities and food will be fixed to help the French cope with rising inflation, said Finance Minister Bruno Le Maire .
«We will double the number of products whose prices will not rise or fall. In total, this is 5,000 items. Distributors have committed to do this, this will be controlled by the General Directorate of Consumption and Combating Fraud,» the minister said on the France 2 TV channel
On Wednesday and Thursday, the Minister held meetings with manufacturers and distributors, from whom the government is trying to achieve price containment amid a decrease in the purchasing power of the population .
At the same time, Le Maire, who is accused of failing to cope with food inflation in the country, criticized a number of large manufacturers, including Nestle and PepsiCo, which, in his opinion, «did not contribute enough» to lower prices for their goods.
Negotiations between manufacturers and distributors in France are held from December to March. During this period, prices are set at which goods will be sold in the coming year. Le Maire has ordered them to begin this year in September, to be completed by early 2024.
Last March, as a result of negotiations, manufacturers achieved a 9% increase in prices in supermarkets, but initially they requested a 15% surcharge.
According to the preliminary report of the National Institute of Statistics of France (Insee), published on Thursday, annual inflation in France in August amounted to 4.8%, again turning to growth.
Growth in food prices amounted to 11.1%. The cost of fuel also continues to increase, and since August 1, the government has raised electricity fees in the country by 10%.
The day before, the head of France's largest retailer Carrefour, Alexandre Bompard, warned of a «tsunami of underconsumption», pointing out that many shoppers could no longer afford the bare necessities.
At the end of June, French Finance Minister Bruno Le Maire warned the French that inflation would not return to pre-COVID levels. He explained this by the economic course towards the nationalization of a number of key industries, as well as actions to combat climate change. Nevertheless, according to the forecasts of the French Central Bank, after the peak of inflation in the first half of the year, it will gradually slow down and reach about 2% by the end of next year.