Bercy seeks the parade in the face of tough inflation

“The renegotiations in the food sector should allow price reductions from January 2024”, declared Bruno Le Maire on France 2, Thursday August 31. Riccardo Milani / Hans Lucas via Reuters Connect

STORY – Price increases reached 4.8% in August. The government will advance negotiations between distributors and large manufacturers by two months.

After a brief lull, theinflation leave. The rise in prices reached 4.8% over one year in August, a sharp rebound compared to July, when it had settled at 4.3%, according to an initial estimate released by INSEE. This increase is due to “the rebound in energy prices”in connection in particular with the 10% increase in the regulated tariff ofelectricity at 1er august. In addition to being bad news for households, this rebound is embarring news for Bercy.

“I had indicated that inflation would start to slow in the summer of 2023. We are there”, rejoiced the Minister of the Economy, Bruno Le Maire, during a back-to-school speech last week, in Haute-Savoie. Admittedly, despite the rebound in August, inflation remains below its levels at the start of the year (more than 6%). In services (+ 2.9%) or manufactured goods (+ 3.1%), it is more reasonable. Nevertheless, prices are still galloping in food and service stations. Hence the pressure put by Bercy …

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