FOCUS- Currently in discussion with the actors of the large distribution, it is directly inspired by a measure adopted in November by Greece.
Among the avenues being studied to cushion the effects of inflation, which returned in 2022 to levels not seen since the 1980s, “one of the possibilities is to have a basket of basic necessities of about twenty products, which the supermarkets would undertake to sell almost at cost price“, said the Ministry of Commerce. “The idea is to have a base of basic necessities whose prices are as low as possible“, we specify from the same source. “It goes from baby hygiene to adult hygiene, dairy products, fresh products, pasta…“, enumerates the entourage of the minister Olivia Grégoire.
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But “we are at the beginning of the discussions“Insists the government, which is awaiting the first returns from the Leclerc group and the Federation of Commerce and Distribution. The executive also indicates that the implementation of the anti-inflation basket will go through voluntary commitments from distributors rather than through legislative or regulatory provisions.
Monday afternoon, however, large retailers had no additional information from the executive, Jacques Creyssel, of the Federation of Commerce and Distribution (FCD), told AFP. “We have had no proposal from the government at this stage, simply a message asking us if we were ready to attend a working meeting on the subject”, he said. And to add: “I said that we agreed to work, without saying that we agreed on a proposal. At this stage, we have no position on a proposal that we do not know.”
If it sees the light of day, the device will apply to “about twenty references out of 20,000 to 30,000 references in store“, which should not excessively penalize the margins of distributors, underlines the ministry. This basket will be specific to each brand, and equivalences will have to be found. For example, if it contains white meat, brands will be able to offer turkey, chicken or pork at cost price. To benefit from tariffs at cost price, the Ministry of Commerce is considering whether to buy the entire basket or the possibility of choosing products on a case-by-case basis. For now, “there is no specific deadline” even if he “need a quick response to inflation“, underlines the executive.
A measure inspired by the Greek government
The government agrees that this measure is directly inspired by those of our European neighbours. While inflation was 8.5% in November, Greece introduced a basket of 51 products at lower prices to deal with inflationary pressures. In effect until the end of March, it contains food products (bread, sugar, coffee, etc.), baby food, hygiene products and cleaning references. The objective was also to fight againstphenomena of speculation“. The conservative Greek government has imposed on supermarket chains the promotion of these products in their advertisements on the internet or in leaflets. Unlike France, this device has been enshrined in Greek law and recalcitrant players risk a fine of 5,000 euros if they do not respect the mechanism.
Two months after its implementation, the basket seems to have borne fruit. According to the Greek economic online newspaper, newmoney.gr, it has stabilized and limited the rise in prices. For example, the price of milk stagnated in November and December while increasing by 3% each month. Over one year, its increase thus stands at 26%, against 30% if the basket had not been put in place. Same observation for the costs of flour and cereals, which fell by 2.5% in November and December, establishing the increase at 33% against 40% expected.
A basket that has “nothing to do with the food check”
In any case, the anti-inflation basket has “nothing to do with the food check“, a system that the French government has tried to put in place several times before giving up in the face of the complexity of targeting this aid to certain audiences. The discussions come as distributors are up against a bill tabled by a member of the majority in the Assembly.
Intended to rebalance the annual trade negotiations between suppliers and distributors, the text is accused by the latter of encouraging inflation. On Sunday, most of the major retail chains published a joint press release denouncing a bill that would fuel “dramatically and lastingly” rising prices. For his part, the boss of the CFDT Laurent Berger estimated this Monday morning on France info that this measure wasa good angle of attack“. “Retailers have a lot of work to do“, he estimated, adding however that it should not be “stigmatizing» for the most modest households.
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