France to Lower Food Prices to Curb Inflation: Hundreds of Products to Get Cheaper

Food manufacturers in France are going to lower their prices to curb inflation. According to Finance Minister Bruno Le Maire, he has made agreements with 75 large companies, which will reduce the prices of hundreds of products from next month.

Pasta, poultry and oil, among others, will become cheaper, Le Maire told BFM TV. Next week, the minister will present a precise list of products. “The prices of certain products will drop from July. And there will be controls and sanctions for those who do not comply.” This would involve price reductions of up to 10 percent.

It is not clear exactly which companies have made promises. These are the largest producers in the country, who together make 80 percent of all food consumed by the French. “If one of these multinationals doesn’t play the game, its name will be publicly revealed,” Le Maire threatened. “Trust is good, controls are better.”

Unilever left on Reuters know that it is one of the companies involved in the talks. “We are indeed in discussions with the ministry and all stakeholders, including retail chains, to find out the best way to serve the purchasing power of the French in the context of high inflation,” said a spokesman for the British food group.

The French measures had been in the air for a while because of the high prices. In May, food prices were 14 percent higher than a year ago. Le Maire has therefore been urging supermarkets and manufacturers to lower their prices for some time. For example, he already threatened tax measures last month to skim off the profits of food companies if they did not want to talk.

Previously, Hungary went one step further. There, the state imposed mandatory price reductions on supermarket chains for certain basic products. In this way, the country is trying to curb the highest inflation in the European Union.

Inflation is also still high in the Netherlands, with food prices as a major driver. In May, everything was on average 6.1 percent more expensive than in May 2022. Nevertheless, intervention – as is happening in France and Hungary – does not seem to be an issue here for the time being.