‘it is madness’: inflation warning as supermarkets face discounts cap

FRENCH SUPERMARKETS ARE SET TO BE RESTRICTED BY HOW MUCH THEY CAN REDUCE THE PRICES OF HYGIENE PRODUCTS SUCH AS NAPPIES, SHAMPOO AND SHOWER GEL Supermarkets in France are set to be

restricted over how much they can discount hygiene products such as nappies, shampoo and shower gel amongst others. A small cross-party commission of French senators and MPs agreed on an

experimental measure that would stop stores from offering more than 34% off. A majority of MPs and senators are expected to approve the bill next week. Critics say the 34% discount limit,

WHICH ALREADY APPLIES TO FOOD ITEMS, was “madness” at a time when households are struggling with rising inflation. READ MORE: SENATORS BACK ENDING 2-FOR-1 DEAL ON TOILETRIES IN FRENCH

SUPERMARKETS But the COMMISSION took a different view, arguing that “shock promotions” of more than 34% “destroy value for hundreds of small and medium businesses”, are “almost entirely paid

for by producers”, and lead them to receive “extremely low” returns or even “produce at a loss”. The group defended suppliers and said that they were aiming to address the “power imbalance

in commercial negotiations”. The move would also “enable us to ensure fair pay for farmers [and suppliers], and fill in economically-unstable legal loopholes for businesses”. READ ALSO:

FRENCH SUPERMARKETS BEGIN DRIVE TO KEEP PRICES DOWN ON SELECTED RANGE ‘NOT THE RIGHT MOMENT’ The supermarket and shopping sector has -- perhaps unsurprisingly -- not welcomed the bill. Union

la Fédération du commerce et de la distribution (FCD) called the measure “irresponsible and inflationist”. It said limiting money-off deals to 34% would “hit people in France most in

difficulty and grow the margins of a few giants in the sector for no reason”. Economics professor at Paris Cité University, Philipe Moati, TOLD _EUROPE 1_ that “it seems that now is not the

right time” to introduce such a law. He said: “We’re going through a period of inflation that is weighing on households’ purchasing power, so it’s not the right time to be adopting laws that

go against this.” In February 2023, it emerged food prices had risen on average 14.8% in just a year. The president of the supermarket brand Système U went further and said the government’s

decision was contradictory and sent mixed messages. Dominique Schelcher said on Twitter: “It is madness! On the one hand, they’re asking us to implement AN _‘ANTI-INFLATION TRIMESTRE’_,

that we’re implementing immediately. And on the other hand, they’re voting for a measure to limit promotions?” > C’est une folie ! D’un côté on nous demande un trimestre > 

anti-inflation dans lequel nous nous sommes engagés immédiatement. > De l’autre le Parlement vote une loi qui limite les promotions > entre autres aberrations. Triste victoire des 

multinationales. > https://t.co/ARQ50i0mnM > — Dominique Schelcher (@schelcher) March 15, 2023 RELATED ARTICLES FRENCH SUPERMARKET FOOD PRICES TO RISE BY 10%, WARNS INDUSTRY CHIEF PLAN

FOR '2-FOR-1' DEALS IN FRENCH SUPERMARKETS AXED AFTER BACKLASH