According to Carrefour’s chairman and chief executive, Alexandre Bompard, it is expected that food price inflation in France will see a substantial decrease beginning in January. This change is a result of the government’s decision to accelerate the annual price negotiations between retailers and consumer goods companies, which were originally scheduled for the following year.
“Starting in January, we should see the level of inflation come down significantly,” he said, speaking on French television channel BFM TV.
Bompard expressed his anticipation that food price inflation would decrease significantly, potentially falling to around 5%, a substantial drop from its current level. Recent data released in August, which marked the fifth consecutive month of easing from earlier peaks this year, revealed that food inflation stands at 11.1%, nearly double the overall inflation rate.
On Tuesday, Bompard had cautioned that elevated prices were compelling consumers to make substantial reductions in their spending on essential commodities.
In France, retailers and consumer goods companies have been engaged in a blame game, each accusing the other for the surge in supermarket prices, despite a recent decline in the cost of raw materials.
The Carrefour executive further noted his anticipation that food inflation would persist at higher levels in the upcoming years compared to the historical decades when it typically ranged from zero to 1%. This expectation is attributed to climate and geopolitical factors.
“The time of zero food inflation, I believe, is behind us,” he said.
