While a new rise in food prices is expected, the anti-inflation basket is still struggling to be put in place. Scheduled for early March, this operation has been postponed. The government is continuing discussions with distributors. What products will make up the anti-inflation basket? How it will go ? The news.
The launch of the anti-inflation basket had initially been announced for the beginning of March, then was postponed by 15 days. For the time being, the government is continuing discussions with distributors to see how this operation could be implemented. The question about the choice of food products is also debated. By mid-March, distributors must make their proposals. But according to the Renaissance MP for Val-de-Marne, Frédéric Descrozaille, who recently tabled a bill to “adapt the balance of power” between large retailers and suppliers, there is likely to be “first price products and imported products“. The latter proposes the establishment of specifications, in order to offer consumers “a healthy basket offeed“.
Rising food prices
A increase in food products is expected in the coming months, warn some retailers, in the face of inflation and store operating costs. This February 25, at the Paris Agricultural Show, Emmanuel Macron asked distributors “to participate in the effort”, which does not pass with farmers who are already struggling to cope with inflation. According to Dominique Schelcher, president of System U, “there will still be food inflation (…) of around 10% throughout the first half of 2023” he announced on February 27 on France Inter.
A decree to impose the anti-inflation basket on distributors?
According LSABercy could now impose this anti-inflation basket on distributors via a decree “relating to consumer information on the price of products from a basket of quality foodstuffs and non-food products“. In concrete terms, consumers will have to be informed on the brands’ websites, but also at the local level, “at the entrance and inside the stores on the list of references chosen from different categories of foodstuffs and non-food products and the individual and global selling price of these references“, specifies the document.
Will the anti-inflation basket still be in place?
For several days, the government seems to be facing implementation difficulties and is relying on distributors. “I don’t know if it will be an anti-inflation basket”, announced Bruno Le Maire, this Monday, February 20 on BFMTV. “This will be what distributors will find most useful and efficient.” added the Minister of the Economy. For Éric Woerth, Renaissance MP, former Budget Minister and former Chairman of the Finance Committee, this project, “as a national tool promoted by the government, it seems to me to be buried” he said on February 22 on Sud Radio. But the Minister Delegate in charge of SMEs, Olivia Grégoire, wants to reassure the French: “We are not giving up on the idea. Bruno Le Maire and I are in the middle of a discussion with the major retail players“, she confided in the newspaper opinion this February 22.
When will the anti-inflation basket be implemented?
The launch date of the anti-inflation basket has been postponed by 15 days. It should therefore be set up March 15 and until June 30, 2023. For the time being, discussions are continuing within the government, with the distributors who should submit their proposals by mid-March.
What products make up the anti-inflation basket?
The anti-inflation basket, designed by the government, is supposed to contain meat, dairy products, hygiene products but also fresh and organic products. The objective is to “ensure that the French can have attractive prices on a daily basket. I’m keen that there are also quality products, fresh, organic products and that it’s not just a low price basket, but a daily basket.“, had specified Olivia Grégoire during the announcement of this device.
A logotype should make it easy for consumers to spot low-priced products in the anti-inflation basket. According to LSA, 37 products among 26 categories would have been chosen, with organic products, PDO (protected designation of origin) or IGP (protected geographical indication), as well as 9 categories of non-food products containing 12 items. For the time being, the government, still in discussion with distributors, is awaiting more proposals on the content of the anti-inflation basket.
Here are the food products that could be offered in the anti-inflation basket:
- Juice
- 5 fresh fruits and vegetables
- Butter, margarine
- Butchery, poultry and fresh fish, frozen meat or fish
- Milk
- Eggs
- Ultra-fresh yogurt and dessert cream
- Cheese
- Frozen meal and frozen vegetables
- Starches, legumes
- Canned vegetables or fish,
- Sugar
- Oil or vinegar
- Canned fruit or compote, or fruit in syrup
- Coffee, tea or chocolate powder for hot drinks
- Jam, honey or spread
- Cookies
- Infant food and infant milk
List of non-food items in the anti-inflation basket
- Soap
- Shampoo
- Toothpaste or toothbrush
- Tissues, toilet paper or paper towels
- Sanitary napkins or tampons, sanitary products
- Baby diapers
- Cleaner (floor, dishes, sponge, multi-surface)
- Laundry care product
- Household packaging products (garbage bags, etc.)
Why Leclerc opposes the anti-inflation basket?
On January 25, 2023, Michel-Edouard Leclerc declared on BFM TV that he had no right to make the anti-inflation basket. “When the public authorities ask us to make a cheaper basket, at the same time other ministries force us to take margins on these items“explained the boss of the Leclerc centers, referring to the Egalim law which requires large retailers not to sell their products with a margin below a certain level.
System U launches its anti-inflation basket with 150 products
In all the Hyper U and Super U stores, and on the brand’s Drive website racesU.coman anti-inflation basket has been available since February 1, 2023 for a “indefinite period”, explained Dominique Schelcher, president of Système U at theAFP. 150 consumer products make up the System U basket, of which hygiene products (baby diaper, shower gel, toilet paper, etc.), foodstuffs (dough, coffee, oil, sandwich bread, candy, cake, aperitif cake, canned vegetables, fruit juice, alcohol, etc.) but also fresh food (meat, yogurt, ice cream, butter, cream etc).
As of today, HYPER U and SUPER U offer 150 everyday U products, at cost price.
With this unprecedented and massive measure, we are committed to the purchasing power of our customers, in response to the government’s call for an anti-inflation basket @oliviagregoire. pic.twitter.com/18SnrpOzJO—Dominique Schelcher (@schelcher) February 1, 2023
Lidl’s anti-inflation basket
The low cost brand lidl announced that she would offer her anti-inflation basket, from March 1, 2023. It will be made up of 50 everyday products, including organic products, food, fresh and frozen products, groceries but also cleanliness and hygiene products, detailed Michel Biero, executive director of purchasing and marketing at Lidl France. this Wednesday, February 1 on BFM TV.
At Lidl we have always been committed to the purchasing power of the French.
In consultation with @oliviagregoirewe will set up an anti-inflation basket with:
Quality everyday products
Fair remuneration for French farmers— Lidl France (@lidlfrance) February 1, 2023
Auchan wants to launch an anti-inflation basket made up of fresh products
The brand welcomes the government’s system but wishes put more emphasis on fresh produce such as meat, fish and fruit and vegetables. “We adhere to the spirit of the government’s anti-inflation basket and the intention, but we are not convinced by the method because we believe that the emphasis should be placed on fresh products” explained Pascale Cartier, director purchases at Capital. About fifteen fruits and vegetables will thus be offered at low prices and consumers will find offers for less than 5 or 10 euros at the fishmonger’s and seafood, and at less than 3 euros at the butcher’s. Nevertheless, at Auchan, the list will not remain fixed and the promotional items will rotate.