June 25, 2022

NyseNewsAnalyst

News Headlines: Hindustan Times provides exclusive top stories of the day, today headlines from politics, business, technology, photos, videos, …

Rising prices: The French must be prepared for the worst

Essential
Due to inflation, the annual food expenditure of the French will increase by 224 euros per person in 2022, according to the Alliance Business Survey released this week. While the government is thinking about food testing and the opposition setting up the “Robin Hood” program, the French are finding solutions to save their shopping.

The war in Ukraine, which has triggered an energy and food crisis, is unlikely to end the months-long price hike. In its latest report, the International Monetary Fund (IMF) predicts that inflation will be higher in developing countries, where price inflation will average 8.7% this year, compared to 5.7% in developed countries. In France, inflation is lower than in our neighboring countries such as Germany, where prices of oil and industrial raw materials fell in April 2022, but the INSEE measures that the prices of food raw materials will change. “Despite the slowdown, food prices in the euro rose again in April (after + 9.2% to + 5.1% in March). Meat prices (+ 8.6% after + 7.0%) and seafood (+ 10.4% after + 9.3%) Prices of oilseeds (+ 22.0% after + 1.3%), cereals (+ 11.5% after + 5.1%) and sugar (+4 .7% after + 8.1%) fell. ”

The French, who noticed these price hikes while shopping, multiplied tricks to save money and had to prepare for difficult days. “The worst is yet to come for European consumers,” said Alliance Insurance, a credit insurance company that warned in a study on food inflation this week. “Currently, the rise in agricultural food prices has not fully gone to the selling price charged by food distributors. In fact, European agri-food producers have increased their prices by + 14% since the beginning of 2021, while food distributors have increased their prices by only + 6%. With less than half the price of inflation, these products are being shipped to end-consumer, family-sold prices, ”explains Alliance Trade.

See also  Kyiv accuses the Russians of wanting to "destroy Donbass," which will continue to be defended.

Prices of food distributors in France may increase by + 8.2%

“Faced with the current situation, the profitability of European food retailers is under pressure due to lower sales volumes and especially high inflation. There is no doubt that prices will continue to rise, ”explained Aurelian Dudoit, Alliance Trade Department consultant.

The impact of inflation on the food budget

So the prices of European food distributors may increase by + 9.4% this year. “German food consumers will be most affected by food distributors’ estimates of + 10.7% in 2022, so the annual food expenditure is estimated at +254 euros a year. Will increase to a total of 2,963 euros, ”explains Aurélien Duthoit.

In the face of rising prices and a sharp decline in home purchasing power, governments are looking for a solution, as inflation has become a major concern for people around the world. More inflation cited).

In France, inflation is becoming an election issue for legislative elections

Many states have decided to react by regulating and supporting the energy sector. Spain and Portugal have chosen to extract gas and electricity prices from European means. In Germany, a grant of 130 130 million has been announced for low-income families to reduce their energy bills. Olaf Scholz has set a check for 100 euros to increase sustenance and a monthly reduction of up to 9 euros for public transport. The United Kingdom on Thursday unveiled a new 15 billion aid package to address the impact of the cost of living on underprivileged families.

In France, rising inflation is directly affecting the legislative election campaign and is becoming an issue, especially between the presidential majority and the left-wing Union (Nupes).

The government, which has spent 26 billion euros since the fall, is preparing for an additional 100 euros incentive from the energy testing system or an 18-cent discount on fuel, following a shield on tariffs on gas and electricity. – If the President’s majority is renewed – an amended budget, in particular, will lead to the distribution of food checks.

The left-wing Union’s “Robin Hood” project

The left-wing union presented its plan to buy power on Thursday, with the bill already drafted ready to go into effect immediately if the Nupes win the legislative elections. Jean-Luc Mélenchon explained that “paying inflation for profit rather than wages and avoiding the pollution of inflation from one sector to another”, especially “by preventing prices”.

In addition to the increase in smik and pensions, wage reassessment, freezing and rent control of basic necessities, the ban on electricity and gas cuts and the cap on collective transportation prices. “This is a legitimate Robin Hood move,” he said. Mலlenchon said briefly.