HomeEconomyWhy the wand has risen little (yet) despite inflation

Why the wand has risen little (yet) despite inflation

In one year, baguettes have taken 5% according to INSEE when food prices have skyrocketed more than 10%. For bakers, the price of bread is highly symbolic and until now they have preferred to take advantage of their margins and increase the prices of other products.

“Revolutions in France begin with the rise in the price of bread.” In an article on skyrocketing inflation in Europe, the New York Times remember the importance of this marker that is the price of the baguette for the French.

However, despite the general rise in food prices over the last year (+11.8% in October according to INSEE), bread does not burn in the same proportions. According to INSEE, the “kilo of baguette” that last October cost 3.59 euros on average now costs 3.78 euros. A baguette of about 250 grams, so the price of the latter has gone from 90 cents on average to just over 94 cents. It is true that an increase of just over 5%, which is still half of food products during the same period.

However, bakeries are not spared by rising costs.

“Bread is politics”

Especially since in 2022, 80% of bakeries were not covered by the energy tariff shield.

If the increase in bread prices has remained relatively reasonable for a year, it is because the bakers have preferred to transfer the increases to other products (pastries, sandwiches, etc.) than to the very symbolic baguette.

Also, many of them were still protected by their old electricity contract this year. Like Jérémy Ferrer, a baker from Meaux, he created Grain de Blé, a collective of 200 artisan bakers.

Therefore, on January 1, 2023, bakers will be forced to raise prices. The profession is already preparing minds.

In the bakers’ confederation, drills were held following new government announcements on aid schemes for small businesses. If the profession accepts this “tariff shield” for SMEs, according to the profession, it will only be able to curb the rise in energy costs.

An increase of 10% would boost the average price of the baguette to 1.05 euros. 10 cents more than today and especially the psychological barrier of the euro crossed for the first time.

Author: Frederic Bianchi
Source: BFM TV

Stay Connected
16,985FansLike
2,458FollowersFollow
61,453SubscribersSubscribe
Must Read
Related News

LEAVE A REPLY

Please enter your comment!
Please enter your name here