The French government has agreed with large retailers that they will significantly reduce the prices of their food products. With this, Finance Minister Bruno Le Maire wants to accommodate consumers, who have had to deal with rising costs in recent months.
Le Maire says prices will be reduced “to the lowest possible level” until June. He indicates that the companies agreed to bear the price reductions’ costs. These would amount to “several hundreds of millions of euros”, according to Le Maire. Most major food retailers in France took part in the talks.
According to the national statistics agency Insee, food prices in France rose 14.5 percent year-on-year in February. Le Maire thinks he can make an “anti-inflation quarter” with the second-quarter measure.
Consumer organizations, however, are sceptical. The proposal comes on the eve of massive nationwide protests in France. These relate to the reform of the French pension system, in which the government wants to raise the retirement age from 62 to 64 years.