The government has scrapped the introduction of its previously announced single-inflation basket. Instead, the minister expects retail chains to draw up a list of products that will be offered at permanently low prices. According to one of the most popular opposition politicians, the French government has once again shown its inability to protect people's general purchasing power. Following talks with supermarkets, the government has finally reached an agreement to allow customers to buy hundreds of products at low prices for three months.

Food inflation is rising in France. The 13.3-percent price hike measured in January was followed by 14.5 per cent in February, according to data released by INSEE, the French national statistical office Preliminary estimates suggest that the trend is far from over, and further price hikes are expected in March.

The situation has deteriorated to the point where more and more people are now resorting to shoplifting. In an earlier article, V4NA highlighted that the problem affects young and old people alike.

Apparently, the government is also aware of the gravity of the situation, as evidenced by the fact that it announced back in January the introduction of an anti-inflation basket, under which retail chains would sell twenty basic foodstuffs at a discount. Our news agency also indicated earlier that the government wanted to have the chains sell those products without a profit. The law, however, stipulates that chains cannot be forced to do that, so the government was planning to introduce the measure on a voluntary basis. The scheme would have included dairy products, fresh goods, noodles and sanitary products.

The government, however, has changed its plan and dropped the idea of an anti-inflation basket, Economy Minister Bruno Le Maire said. He justified the move by saying that the French government did not intend to provide targeted help, that is, one that would benefit only a certain part of the population. Instead, it wants to help everyone, because the price hikes have an impact on the whole population.

Economy Minister Bruno Le Maire and Trade Minister Olivia Gregoire met representatives of the retail chains around the negotiating table on Monday, 6 March, after Le Maire announced that the state rejected the idea of an anti-inflation basket and asked producers and distributors to do their part and make efforts to reduce the impact of the price hikes on consumers, Le Monde writes.

According to information obtained by Le Figaro, both the economy and the finance ministry prefer a scenario with more products sold at discounted prices for a longer period of time, at least three months. The promotions will vary from shop to shop, as the ministry will leave the selection of products sold at discounted prices up to the stores. Regarding the measure, the ministry said that it will guarantee that customers will be the winners in the end, adding that cutting the price of products is not a goal, but a means to reduce costs.

One of the most popular right-wing politicians, Marine Le Pen, sharply criticised the government’s decision to drop the idea of an anti-inflation basket. The government rejected the only idea that could have restored the purchasing power of the French, especially of the poorest social groups, the opposition politician wrote on Twitter. The government is completely powerless to protect French people in this arena, Ms Le Pen pointed out.

Le gouvernement renonce á sa seule idée qui aurait pu rendre du pouvoir d’achat aux Français, notamment aux plus modestes.

Dans ce domaine comme pour d’autres, c’est l’impuissance totale á agir pour protéger les Français. https://t.co/LH07CO8DrB

— Marine Le Pen (@MLP_officiel) March 5, 2023

A consumer organisation called CLCV considers the above measure to be insufficient, and has called on the government to introduce a new anti-inflation cheque that would help the poorest groups, emphasizing that a quarter of the population is forced to skip one meal a day, BFMTV reported.

After negotiations with the managers of retail chains, Economy Minister Bruno Le Maire announced that an agreement had been reached and stores would launch a three-month anti-inflation quarter. In practice, this means that each retail chain will offer its own selection of products at cut prices for three months until June. According to Le Figaro, the store chain dubbed Systeme U will sell 150 products at cost price, Intermarche will offer 500, Monoprix 300, and Carrefour 200 products at reduced, fixed prices. The latter announced that it will sell a select number of products at a 2-euro price point.

To help customers identify discounted products, these items will bear a logo featuring the red, white and blue colours of the French flag and the clearly visible „anti-inflation quarter” slogan.

Pour que les consommateurs français puissent les identifier facilement, ces opérations seront labellisées par un logo « Trimestre anti-inflation » aux couleurs tricolores : bleu, blanc, rouge. 🇫🇷

— Bruno Le Maire (@BrunoLeMaire) March 6, 2023

In addition, Economy Minister Bruno Le Maire announced that a meal voucher will be introduced for the most needy. The measure will be piloted in the coming months, with local prefects put in charge of allocating the vouchers.

Bruno Le Maire: „Il y aura bien un chèque alimentaire pour les plus modestes, sur une base locale” pic.twitter.com/6XywaqJ5sF

— BFMTV (@BFMTV) March 6, 2023