French citizens already grappling with a cost-of-living crisis face a 10 percent hike in grocery prices following negotiations between supermarket bosses and food producers.
The Federation of Commerce and Distribution (FCD) – which represents supermarket chains such as Franprix, G20 and Casino – and manufacturers agreed the increase in prices paid by supermarkets to their suppliers should be around 10 percent.
However, the precise figure should emerge within the next week.
"I'm not going to venture to give any numbers," said Economy Minister Bruno Le Maire during a visit to the Paris Agriculture Fair. "But any increase, whatever it may be, will obviously be very difficult for French people to live with."
INSEE, France's national statistics bureau, estimates that food prices rose 14.5 percent between February 2022 and February 2023.
In March 2022, producers obtained an increase of about 3 percent before prices went up mainly due to the war in Ukraine.
This led to the reopening of talks aimed at passing on the cost of agricultural raw materials, packaging, as well as increases in gas and electricity costs.
Profiteering claims
François-Xavier Huard, head of the French dairy industry federation (FNIL), told the French news agency AFP: "We expect a lot of work for the mediator."
It is understood that the talks were undermined by suspicions of profiteering.
The supermarkets have been accused of trying to pose as champions of the shoppers by demanding low prices from the producers who say they need to make enough from what they are selling to upgrade their factories and keep people in jobs.
When he visited the Agriculture Fair on 25 February, French President Emmanuel Macron urged supermarket bosses to help keep costs down.
The prospect of rises comes as volunteers start a three-day collection of food and hygiene products at supermarkets throughout France for people using foodbanks.
Last year, the organisation Les Restos du cœur distributed 142 million meals and assisted 1.1 million people, half of whom are under 25-years-old.
The group aims to collect 9,000 tons of food between 3 and 5 March.
