PARIS, April 21 (Reuters) - French Finance Minister
Bruno Le Maire pledged on Friday to take action against food
retailers if they do not pass on lower wholesale prices to
consumers struggling to cope with the rising cost of living.
Global wholesale food prices have been falling but French
food retailers and their suppliers agreed a 10% average increase
in prices in annual negotiations in March, which both sides said
was necessary to cover higher production costs.
Le Maire has repeatedly called in recent days on both sides
to reopen negotiations to ensure that the fall in wholesale food
prices is passed on.
"If they don't do it, we will summon them to the finance
ministry and if that is not enough I will use all the powers at
my disposal to ensure that the big industrial companies pass on
the decrease," Le Maire said during a visit to a company in
northern France.
He did not specify what action that could include but the
authorities responsible in France for consumer protection and
competition answer to Le Maire.
Under pressure after forcing through an unpopular increase
in the retirement age, President Emmanuel Macron's government is
eager to be seen tackling citizens' every-day problems, such as
surging food prices.
In the wake of the retailers and suppliers agreement, food
prices rose by a record 15.8% in March from a year earlier,
limiting a fall in overall French inflation to 6.6%, which is
otherwise being pulled down by lower energy prices.
The increase came even though global food prices fell in
March for a 12th consecutive month and are down 20.5% from a
record high hit a year ago following Russia's invasion of
Ukraine, according to the United Nation's Food and Agriculture
Organization earlier this month.
"I don't see why when prices go up companies pass on the
increase immediately, but when the price of wheat falls, the
price of pasta takes three months to fall. It's unacceptable,"
Le Maire said.
(Reporting by Leigh Thomas; Editing by Susan Fenton)
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