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Price caps on food products in France - reports

  • By Al Mayadeen English
  • Source: Agencies
  • 6 Mar 2023 18:23
2 Min Read

French Finance minister works out a deal with the major retailers to establish cap prices on a variety of staple foods

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  • Economy, Finance, Industry, and Digital Security Minister Bruno Le Maire at the Paris-Nord Villepinte Exhibition Centre in Villepinte, north of Paris, France, June 13, 2022 (Reuters)
    Economy, Finance, Industry, and Digital Security Minister Bruno Le Maire at the Paris-Nord Villepinte Exhibition Centre in Villepinte, north of Paris, France, June 13, 2022 (Reuters) 

It was announced today that the French Finance minister had worked out a deal with the major retailers to establish cap prices on a variety of staple foods for a span of three months starting in March.

"I am glad to announce that we made a deal with a group of distributors this morning… to keep prices of a range of essential products as low as possible for the duration of three months," the minister said in a press conference.

According to Le Maire, the "anti-inflation quarter" pact will ensure the availability of food products in the market while keeping them at affordable prices to relieve the burden of inflation on financially challenged households and minimize the effect of inflation on purchasing power. 

The list of products that will fall under this strategy of subsidization will be specified by distributors.

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The rate of inflation has increased from 6% in January to 6.2% in February. Food prices specifically have increased by 14.5% since last year. 

Read more: The Baguette and The Beast: French fear inflation against culture

Earlier in January, Bruno Le Maire had said "The state is ready to do everything necessary to help bakers that are worried and at times in complete despair.”

French Prime Minister Élisabeth Borne had made vows, which help bakers pay their electric bills in installments and delay tax payments till next year when energy bills are expected to be lower. 

Read next: Macron believes global food crisis to last longer than Ukraine war

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