(Adds details on minister's comments, background on food
inflation)
PARIS, May 11 (Reuters) - The French government could
use tax measures to claw back profits from the food industry if
it does not accept talks on high prices, Finance Minister Bruno
Le Maire said on Thursday.
With food inflation running at a record 15% in recent
months, the government is furious that retail prices remain high
despite declines in raw material prices.
Le Maire said that the food industry was reaping big profits
and that it must reopen annual negotiations with retailers and
lower their prices.
"If ever the food industry does not return to negotiations
... we will use all measures at out disposal, including taxes,
to recover profits unfairly made on the back of consumers," Le
Maire told journalists ahead of meeting with representatives of
big retailers.
French food prices spiked after food companies and retailers
agreed to a 10% average increase in prices in annual
negotiations in March, which both sides said was necessary to
cover higher production costs.
But with high food prices buoying overall inflation, Le
Maire has repeatedly called for negotiations to be reopened to
ensure that the global fall in raw materials filters through to
consumers.
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.
(Reporting by Leigh Thomas;
Editing by Alison Williams and Jon Boyle)
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