France in for brutal price hike in nappies

France in for brutal price hike in nappies

Inflation in France has spread to baby products, forcing young parents to dig deeper into their pockets. The price of disposable nappies is likely to rise by as much as 25 per cent in March, the head of one large store chain says. It is an essential product for families with small children and thousands of nappies are used before a child becomes potty-trained.

ECONOMY WORLD MARCH 2. 2023 15:35

Inflation in France does not appear to be subsiding. On the contrary. Figures published by the French statistical office (INSEE) reveal that it grew by 6.2 per cent year on year in February, with prices climbing further compared to a 6-percent spike measured in January.

The rise in prices mostly affects food and energy prices, and preliminary estimates project further hikes to expect in March. Apart from rising prices experienced by everyone, parents with small children will also have to dig deeper into their pockets, as the price of disposable diapers may also rise significantly, by up to 25 per cent. As no agreement was reached during the annual price negotiations between retail chains and manufacturers that ended on Wednesday, a significant increase in prices may come, Dominique Schelcher, head of the French Systeme U store chain told Le Parisien in an interview. The price hike can be as high as 30 per cent compared to last year, the expert told France Info.

The price of cellulose needed for the production of nappies began to rise in 2022, pushing up the price of the product, Nicolas Leger, analyst at the NielsenIQ market research company, pointed out. The paper industry saw the price of this raw material rise by roughly 40 per cent last year. The price of nappies has been steadily rising for a while now, with Europe1 reporting in July that in French pharmacies, baby products rose the steepest in price during the summer, with the price hike reaching 91.3 per cent for nappies manufactured by Pampers.

France info calls attention to the fact that the trend is not expected to change and the prices of disposable nappies will most likely grow further. The portal writes that in February 2023, nappies cost only 8.5 per cent more than a year before, while the prices of the also cellulose-based kitchen towels increased by 25 per cent, and that of toilet papers rose by 21.5 per cent. Experts explain this slow rate of price increase by the fact that supermarkets sell nappies with a lower profit margin in a bid to stay competitive. Nicolas Leger emphasized that last year, 42 per cent of nappies were sold at a discount by hypermarkets and supermarkets. The fact that nappies are easy to store and do not have a warranty period makes it even easier for stores to stock enough supplies for weeks.

Due to the reasons explained above, experts believe that the price of nappies will increase gradually, and the process may even last until the summer. At the same time, they consider the 25-percent increase mentioned by Dominic Schelcher to be very likely. The leader of the Systeme U network, however, also voiced his opinion that not only March, but the entire first half of the year will be difficult in terms of inflation.

France Info emphasizes that the drastic increase in the price of disposable diapers has a negative impact on young parents in particular. It is a significant expense, since the amount of nappies necessary until a child is potty- trained is estimated between 3,800 and 4,800. A single piece of nappy currently costs between 15 and 30 euro cents, and it is an essential product in households with small children.

ECONOMY WORLD

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baby diapers, france, inflation, price increase