Many French people are already feeling the rise in prices hard on their budget. Distributors seek to put in place countermeasures to these increases.
“We’re only halfway“Warns Dominique Schelcher, president of System U, at the microphone of RMC this morning. In his viewfinder, the distributor points to rising prices. As revealed by the study of the specialized research institute IRI, the latter has reached records in the country. A multitude of factors are already at the origin of this. But others could be added to further amplify the phenomenon. In the front row: the war in Ukraine. Although it started at the end of February, its influence on inflation has not yet been fully felt. What will be the real impact? “Nobody has crystal balls“, points out Dominique Schelcher, but he does not exclude that “we could end up with 7% inflation or even a little more“.
Geopolitical events already have a direct influence on inflation. European embargoes and retaliatory measures against Russia have thus caused the price of energy or wheat to soar. Two elements that strongly influence everything else, starting with pasta, one of the main food victims of the price waltz, with a jump of 15.31% over one year according to the study by the specialized research institute IRI.
The poor harvests of last year are also detrimental. Their weight is especially felt on fruits and vegetables and derivative products such as mustard (+9.26%). In the meat department, bird flu is causing a surge in labels on poultry. At last “trade negotiations to defend the price of farmers“Also have their share of responsibility, reveals The boss of System U.
Drop in consumption
Result, “shopping carts are shrinking“, notes Michel-Édouard Leclerc. But solutions exist. At U, we recommend giving priority to promotions and distributor brands. At Leclerc’sa shield“has been implemented on 120 products”among the most purchased by customers“. But beware, shield does not mean blocking. Indeed, labels will continue to evolve. However, “we will reimburse these increases in kitty, vouchers…on the loyalty card (which is therefore de facto necessary), warns Michel-Édouard Leclerc.
The latter does not hope to stop there. He therefore calls for the abolition of the mandatory 10% margin on products. Put in place to support producers, this measure no longer seems adapted to the current situation, according to him. On the contrary, a revival of the price war and competition between brands could help dampen inflation.
All call for a new inventory in the summer or even in the fall to get a clearer idea of the situation. It is at this time that the impact of the war in Ukraine and a possible embargo on Russian oil will be known.