In an effort to stem the escalation of price increases, the French government has adopted the “quarter anti-inflation” plan, a measure similar to that of the Argentine government with the Fair Prices program.
French President Emmanuel Macron, after exerting strong pressure on hypermarkets to stop price increases, managed to agree on a plan to try to contain the rises.
Under this programme, Carrefour and Intermarchethe main French hypermarket chains, they announce a basket between 200 and 500 products with frozen prices. These items are offered for less than two euros.
With annual food inflation reaching 14.5% in Februaryfor France, prices have become a major concern.
A similar strategy had been implemented in France during 2022. In August of that year, the Carrefour chain ordered a basket of 100 basic and own-brand products to be frozen for 100 days, but that time the measure was promoted by the company itself.
This week the announcement came from the hand of the Government, which has been pressuring companies for some time not to raise prices and establish a product list. Although the plan has been launched, it does not contemplate a list set by the Ministry of Economy, as happens in Argentina.
The French government has failed to close a consent list with supermarketsTherefore, the compilation of the product list was left to the choice of each company.
In this sense, French Economy Minister Bruno Le Maire tweeted: “French supermarkets are not the problem in the fight against inflation. On the contrary, they are part of the solution.. We thank you for the important effort you are making on your margins to participate in the fight against the high cost of living”.
As part of this strategy to limit upside, Carrefour will focus on own-brand product operations“Which is where retail chains have the most leeway to set prices,” he said. Alexander Bombard, Supermarket chain CEO.
The Casino chain also announced it that from 15 March will have its own list of products at frozen pricesa selection of 500 garments for less than one euro which will be kept for three months.
In order for consumers to easily identify the products and not be misled by containers with similar characteristics, with more or less milliliters or grams, Bruno Le Maire announced that “these operations will be labeled with a logo of “anti-inflation quarter” in three colors: blue, white and red.
And he clarified: “It will be a massive, effective and protective measure, which will guarantee the lowest possible price on a series of items, which will be chosen freely by the distributorstaking the lowest possible price level from dealer margins”.
For Argentine analysts, this type of measure does not solve the root problem. This was stated by Camilo Tiscornia, director of C&T Asesores Económicos clarion that “in France, which is part of the European Union, the control of inflation is in the hands of the Central Bank, which has already warned that it will continue to raise interest rates to contain inflation”.
“These plans or programs are patches, we have already seen it in ArgentinaThey are transient things. It may make sense for a certain period in European countries, in certain segments of the population, but that this will solve inflation is very unlikely, Argentina is a faithful reflection of that,” she concluded.
AQ
Fernando J. Genazzini
Source: Clarin
