There will have been no “green July” on supermarket shelves. According to INSEE, the prices of food and beverages (excluding fresh products) sold in supermarkets increased by 0.4% last month, after +0.2% in June. In one year, the increase was 13.1%, after +14.4% in June and +15.1% in May.
While food prices continue to rise, the trend is slowing compared to last year. In detail, meat prices increased by 11.3% in July in one year, after +12.6% in June. Beverage inflation also slowed in one year, from +10.8% in June to +10.1% in July. Finally, the prices of “other food products” increased by 15% in July in one year, after +16.6% in the previous month.
On the other hand, for a month, INSEE has not observed a net slowdown. The prices of meat and drinks sold in supermarkets increased by 0.4% between June and July, compared to +0% and +0.3% respectively between May and June. Inflation for “other food products” also accelerated in one month, from +0.2% in June to +0.3% in July.
Inflation of consumer goods at 12.5%
All products combined (food and non-food), mass distribution inflation reached 12.5% in July, after +13.8% in June. Prices also rose for a month (+0.3%, after +0.2% in June).
Unlike food products, INSEE indicates that the prices of cleaning and hygiene products are slowing down, both one year (+9.4%, after +10.3% in June) and one month (+ 0.1%, after +0.5%).
Asked by RTL on Friday, the head of Système U, Dominique Schelcher, was upset by the failure to reopen trade negotiations between distributors and manufacturers: “We have some players who lowered prices, did promotions, but in general, these discussions have been very difficult.”
The leader, however, assured that the peak of inflation was “behind” and that food prices “will not rise” in the coming months. “But we are not going to return to the prices of before the crisis because some raw materials remain at high prices, wages have also risen, fuel prices as well,” he warned.
Source: BFM TV
