French food producers have asked distributors to raise prices by an average of 15% in stores since March, Jacques Cressel, director general of the French Federation of Trade and Distributors, said.
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On Wednesday, trade negotiations between manufacturers and distributors are ending to reach agreements on the final prices for their products. Kressel noted that distributors will be forced to buy goods from manufacturers at a price, on average, 10% higher than before.
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“We will have to pay an average of 10% more for big brand products from the beginning of March,” he said.
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Kressel noted that the negotiations were “extremely difficult” and many large manufacturers insist on raising the prices of their goods by 15% -16%.
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“This kind of growth is unacceptable in a period that is so difficult in terms of the purchasing power of the population. Distributors will be forced to pass this growth on to customers, noting that large stores “will try to limit the increase in prices for end consumers as much as possible,” he said
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Inflation in France accelerated to 6.2% in February, with food prices rising 14.5% year-on-year after 13.3% in January, according to a report by the National Institute of Statistics of France (Insee) released on Tuesday.
