While inflation has been affecting France for several months, some craftsmen are forced to revise the prices of their products upwards. In particular bakers, who could increase that of the baguette.
A baguette see you soon 1.50 euros ? This is what bakers are thinking hard about, as they have been suffering for several months from increases in energy prices, but also from soaring raw material prices. So in order not to lose their margin, most are seriously considering increasing the famous baguette again by a few cents. In August 2022, according to INSEE figures, a classic baguette was sold for 94.5 euro cents on average, i.e. almost one euro. A significant increase compared to last year, when it was still sold for 90 cents, while the traditional baguette has long since passed the one euro mark, and generally sells for up to 1.30 euro, if not, more. “The baker who will not raise his wand, it will close“thus entrusted to BFM TV Dominique Anract, the president of the National Confederation of French Bakery-Pastry (CNBPF).
Why such an increase? Because for several months, between the energy crisis and the war in Ukraine, where wheat exports have mostly been blocked in ports by Russia, bakers have been hit hard by price increases in cascade for the manufacture of their bread. If BFMTV recalls that the millers have delayed certain increases by absorbing part of the additional cost, flour and yeast have seen their prices increase. Not to mention that the ovens, which run on gas or electricity, are particularly energy-intensive and quickly drive up bills. The salary increasebecause of inflation, is also to be taken into account in this increase in the cost of the wand.
An increase of 10 to 30%
If the 2023 budget provides for a tariff shield next year for companies with fewer than ten employees, it will still be necessary to integrate a 15% price increase Energy. While this system concerns many bakeries in France, the largest companies could be strongly impacted by the energy crisis, and therefore forced to increase their prices so as not to lose their margin. According to the CNBPF, which is convinced that “consumers will understand” these increases, if the energy is multiplied by three, the baker will have to increase its prices from 10 to 15%. If it is multiplied by five, it is 30% that prices will have to be increased so that the activity is maintained.