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Inflation: the battle is ‘not yet won’, says Michel-Edouard Leclerc

“In general, inflation has been defeated today, and this is a real economic success,” Bruno Le Maire confirmed in November. No, judge Michel-Edouard Leclerc, Sunday lunch guest on the BFM Politique show, in partnership with Le Parisien-Aujourd’hui in France. The battle against inflation is “not yet” won, he said. “He has foresight,” said the president of the strategic committee of the country’s number one distribution group when asked about the economy minister’s enthusiasm.

What about foods that the French love during year-end celebrations, foie gras or even smoked salmon? “Prices on the shelves will not change, except for clearing operations if there is too much stock,” assures Michel-Edouard Leclerc, who notes that consumers have a “desire for family entertainment” after “three very disruptive cycles, very disrupted, 21% for two years of food inflation. What’s more, as Christmas approaches, prices on about half of the toys drop by “3-5%.”

“We are negotiating, buying for next year, Leclercs are coming together as one,” the manager continued. “We are going to get negative results from large multinational producers to offset yesterday’s hyperinflation,” he continued.

Annual commercial negotiations take place each year to determine the terms under which supermarkets will receive supplies from their agribusiness suppliers all year round. Those discussions usually end on March 1, but the government has decided to push them forward a few weeks in hopes of allowing lower costs for some raw materials to be reflected more quickly in shelf prices.

Inflation slowed sharply in France last month to +3.4% for the year after +4% in October, thanks in part to slowing prices for services, energy and, to a lesser extent, goods, manufactured goods and food. Michel-Edouard Leclerc is betting on a slowdown in price growth next year, which is “no more than 2.3%” for his brands, the effects of which should be felt in French wallets in the coming months. “


Source: Le Parisien

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