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Shopping trolley in French supermarket: pressure from the government
Photo: Joly Victor / ABACAPRESS / IMAGO
In the fight against inflation, 75 large food companies in France will reduce the prices of hundreds of products in the future under pressure from the government.
"I'm telling the French that prices for certain products will fall as early as July," French Finance Minister Bruno Le Maire told BFM TV. He cited pasta, poultry and oil as some of the products for which prices are expected to fall.
"We will impose sanctions on those who do not play by the rules." If food companies do not keep their promises, he will publish their names, Le Maire threatened.
The minister had met on Thursday 75 companies that produce and sell 80 percent of French food. Next week, a list of hundreds of products affected by the price cuts will be published, Le Maire announced.
Hungary's government also intervened
For some products for which wholesale prices have fallen, retail prices must also fall. He mentioned a range between two and ten percent.
French inflation cooled more than expected in May, falling to 6.0 percent, its lowest level in a year. Still, food prices rose 14 percent, after a record increase of nearly 16 percent in March.
It is not only the French government that is trying to curb high food prices. For example, Hungarian Prime Minister Viktor Orbán imposed binding price cuts on some staple foods at major retailers. The inflation rate in Hungary was recently more than 20 percent.
mmq/Reuters