"We confirm our participation in ongoing discussions with the Ministry of the Economy and all stakeholders, including retailers, to identify the best actions to serve the purchasing power of the French, in this context of high inflation," a Unilever spokesperson told Reuters.įrench supermarket industry association FCD welcomed the government's intervention, but said most food companies have so so far refused to renegotiate prices. Unilever, the maker of Hellmann's mayonnaise and Knorr soup, said it was one of the 75 companies the government said should cut prices next month. "On a certain number of products where wholesale prices have fallen, then the (retail) prices will have to fall too, by 2, 3, 5, maybe even 10%," he said, adding that he would have a full list of products affected next week. Le Maire said if the food companies do not live up to their promise to cut prices, he could publicly "name and shame" them. The European Central Bank, which is expected to raise interest rates again next week even though growth is very weak, has said high corporate profit margins are also an inflation risk.Įuro zone inflation fell more than expected in May but is still more than three times the ECB's 2% target.įrance's Carrefour has an "anti-inflation button" on its website that shows customers cheaper alternatives to products, often pointing them to own-brand groceries.Īccording to a survey by Euromonitor, 22% of Europeans said they plan to increase their purchase of private label products in 2023, up 5 percentage points from last year. While the pace of food price rises has been slowing across the euro zone, it is the main factor keeping inflation high. The costs of beef, pork and milk would not be affected by the move, he said. Le Maire said pasta, poultry and vegetable oil were among products on which prices will be cut. "There will be checks and there will be sanctions for those who don't abide by the rules." "As soon as July, prices of certain products will go down," Le Maire told BFM TV on Friday, after meeting food industry representatives a day earlier. Improved harvest prospects have helped push the United Nations' index of world food commodity prices to a two-year low.įrance's finance minister has previously threatened to claw back what he described as "undue" profits from food companies with special taxes if they did not pass on their own lower costs to consumers already struggling with high energy bills. The government is furious that supermarket prices have hit record levels in recent months even though the costs of many raw materials used by food producers have been declining. The companies, which together make 80% of what the French eat, could face financial sanctions if they don't follow through, Le Maire said. PARIS, June 9 (Reuters) - French shoppers should pay less for their food from next month, Finance Minister Bruno Le Maire said on Friday, after he secured a pledge from 75 food companies including Unilever (ULVR.L) to cut prices on hundreds of products.
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