France leans on retailers to help consumers cope with food prices

France leans on retailers to help consumers cope with food prices

PARIS (Reuters) – Frances finance minister urged food retailers on Monday to do more to help consumers cope with high prices, as the government leans on them to agree to sell an anti-inflation basket of everyday essential goods at knockdown prices.

“The rise in food prices is a major concern and everyone must take its share, including retailers,” Bruno Le Maire told RTL radio.

“The state must do its share but retailers must also do more,” he added.

The government wants big retail chains like Carrefour, Casino and the family-owned grocery dynasties Auchan and E. Leclerc, to sell a basket of about 50 everyday items at purchasing price from next month.

However, only smaller chains like the Systeme U and discounter Lidl have agreed to the government initiative, but some retailers like Carrefour say they have already taken action by blocking prices a set number of goods.

The INSEE official statistics agency forecast last week that food price inflation would remain at 13% over the first half the year.

Food prices were expected to become a bigger driver in coming months of overall inflation, which was forecast nonetheless to ease from 6.0% in January to 5.0% by June.

The finance ministry conducted an investigation into food retailers margins last year but did not find evidence of price gouging.

(Reporting by Dominique Vidalon; Additional reporting Leigh Thomas; Editing by Sudip Kar-Gupta and Tassilo Hummel)