Retail storm warning. Caught between galloping inflation in food prices and energy costs, the sector today would see its economic model threatened.
Invited to the set of Good Evening Business this Wednesday, Jacques Creyssel, director general of the Federation of Commerce and Distribution, is alarmed by the 12/13% inflation in food, “we are already there in basic products”.
Increases that consumers can no longer bear: “this is reflected in volumes: fish is between -20 and -30%, meat -12%, fruits and vegetables -8%”, continues the manager.
Not to mention the “terrible wall of energy” that will cause a considerable increase in costs for the sector.
“Europe’s Economic Suicide”
What shakes the mass distribution model, “that’s the whole problem”, said Jacques Creyssel.
“We will have to raise prices massively to hold out, but if we do, there will be a deterioration in the volumes sold. Production systems are not made to sell much less product, ”she worries.
And it is not Europe that will quickly come to the aid of these economic (and other) actors. The official fears that “the decisions will not be (taken)”, while the Commission must present a plan to regulate prices this week.
The risk according to him, “an economic suicide of Europe”.
Source: BFM TV
