2024-01-05 19:01:00
Year-on-year inflation was 3.7% in December, 0.2% higher than in November. However, some distributors are promising a further reduction in food prices.
After a lull in the fall, consumer prices started to rise again in December with an increase of 3.7% year-on-year, INSEE announced. This is slightly higher than inflation in November, which was estimated at 3.5% year-on-year.
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“This increase in inflation would be due to the acceleration over one year in the prices of energy and services,” explains the statistics institute in a press release. The prices of manufactured products and food would therefore continue to increase to a lesser extent.
Still far from the February peak at 6.3%
Despite this slight rebound, inflation in December remains below the level reached during the peak in February 2023 (6.3%).
This overall figure, however, hides disparities. In food, inflation over one year is estimated at 7.1% in December, while it would only be 1.4% for manufactured products. In services, prices increased by 3.1% (compared to 2.8% in November), while those of energy rose by 5.6% year-on-year (3.1% in November).
Bras de fer between Carrefour and Pepsico
Some countries are doing better, like Portugal, which managed to bring its inflation down below 2%. In this context, certain distributors have tightened their standoff with manufacturers in price negotiations.
In any case, Carrefour announces its desire, Thursday January 4, to no longer sell Pepsico group products in its stores in France, starting with bottles of Pepsi, Lipton tea or Bénénuts peanuts.
The brand is protesting against requests for price increases that it considers “unacceptable”, as part of the annual negotiations currently taking place between manufacturers and distributors.
Leclerc: “We are going to beat the hell out of inflation”
This type of strategy is not “winning”, believes Michel-Edouard Leclerc on franceinfo. “It usually only lasts a few days or weeks before a compromise is reached.” The boss of the Leclerc stores complains of significant increases from manufacturers on chocolate bars or oil.
“We are going to look for pockets of price reduction, we are going to go and beat the crap out of inflation,” he nevertheless promises. “We are going to arrive with inflation, I think – at the end of January, beginning of February – which will be at least half less than last year.
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