Macron braces as French inflation sees product prices soar – meat to rise 25%

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Inflation in France is set to cause a 10 percent price increase on supermarket shelves on average. The product categories whose prices have risen the most so far are meat, poultry and charcuterie. A jump of 24.5 percent for meat and poultry, 18 percent for pasta.

Products sold in supermarkets are hit hard by inflation, which reached around 7 percent on the shelves in August over a year, and could climb to 10 percent by the end of 2022.

The benchmark supermarket sales panellist NielsenIQ noted in a statement on Thursday that inflation “did not go on holidays in July/August”, with the average price of so-called FMCG products – those households regularly buy in supermarkets – rising by 6.6 percent in August.

NielsenIQ, according to which all product categories were sold at higher prices in August than a year earlier, noted: “A 10 percent inflation outlook by the end of 2022 is confirmed.”

NielsenIQ also notes that prices for first-price and “private label” products, i.e. those created by the chains that market them, have increased by three points more than national brand products.

This is mainly due to the fact that production costs and agricultural raw materials, which have been highly inflationary since mid-2021, account for a larger share of their price than national brands, where marketing expenses are more important.

In June, the Inflation Observatory estimated the impact of these 7 percent price increases at €30 of additional expenditure per household per month.

To cope with this, consumers are moving downmarket, cutting out certain products that are considered less important, or turning to brands that are considered better value for money.

Economy minister Bruno Le Maire said on Wednesday that “we should not expect any improvement on the inflation front before the beginning of 2023”.

He added: “We don’t have a scenario on the table today that predicts double-digit inflation in France.”

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“It is on the issue of Russian gas that part of the growth in Europe will be played out in the coming months,” according to the minister.

Growth in the eurozone was 0.6 percent in the second quarter compared to the previous quarter, and 0.5 percent in France.

But private sector activity contracted in August in the eurozone, and also in France, although less strongly, according to PMI indices published on Tuesday by S&P Global.

Additional reporting by Maria Ortega

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