French finance minister Bruno Le Maire said on Friday that major French food companies, including Unilever, have pledged to cut prices on hundreds of products from next month and have threatened monetary sanctions if they break their promise.
The government is very upset after the prices of goods purchased by consumers in retail stores reached a record level in recent months, despite the decline in prices for many raw materials purchased by companies.
Le Maire has previously threatened to exact what he called “improper” profits from food companies by imposing special taxes on them unless the benefits of lower commodity prices are passed on to consumers who are already suffering from higher electricity bills.
“Prices for some products will drop by July,” Le Maire told BFM on Friday after meeting with food companies yesterday.
He added: “Supervision and fines will be applied to those who do not follow the rules,” noting that the prices of some products, such as pasta, poultry and vegetable oils, will be reduced.
Le Maire said that if the food companies, which produce 80% of 75 French food products, fail to deliver on their promise, they will be revealed to the public and embarrassed.
“As wholesale prices for a number of items are down, (retail) prices should also be down by 2, 3, 5 or even 10 percent,” he said, adding that he would have a list of items in question next week.
France’s annual inflation fell more-than-expected in May to 6%, its lowest level in a year, with modest gains in energy and food prices, but food prices continued to rise 14% last month after a record rise of about 16%. in March. /March.