“We could end up with inflation of 7% or a little more,” warns the head of System U

"We could end up with inflation of 7% or a little more," warns the head of System U

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Many French people are already feeling the effects of rising prices on their budget. Distributors seek to counter these increases.

We are only halfway there“He warns Dominique Schelcher, president of System U, at the RMC microphone this morning. In his viewfinder, the distributor points out the price increase. According to a study by the specialized research institute IRI, the latter has set a record in the country. Many factors are already at the source of this. But more could be added to further enhance the phenomenon. In the front row: the war in Ukraine. Although it started in late February, its impact on inflation has not yet been fully felt. What will be the real impact? “Nobody has crystal balls“, Points out Dominique Schelcher, but does not rule out that”we could end up with inflation of 7% or a little more“.

SEE ALSO – Inflation, energy: How high will prices go up?

Geopolitical events are already having a direct impact on inflation. The European embargo and retaliation against Russia have therefore caused the price of energy or wheat to skyrocket. Two elements that strongly influence everything else, starting with pasta, one of the main food victims of the price waltz, with a jump of 15.31% in one year according to the study of the specialized research institute IRI.

Last year’s poor crops are also harmful. Their weight is particularly noticeable in fruits and vegetables and derived products such as mustard (+ 9.26%). In the meat sector, bird flu causes an increase in labels on poultry. Finally “trade negotiations to defend farmers’ prices“They also have their share of responsibility,” said System U.

Decline in consumption

Result, “Shopping trolleys are shrinking“, Notes Michel-oudouard Leclerc. But there are solutions. At U, we recommend giving priority to distributors’ offers and brand names. At Leclerc’sa shield“has been applied to 120 products”of the most purchased by customers“But beware, a shield does not mean a block. Indeed, the labels will continue to evolve. However,”we will return these increases to kittens, coupons …on the reward card (which is therefore de facto necessary), warns Michel-oudouard Leclerc.

SEE ALSO – War in Ukraine: “I do not believe in inflation shock”, says Bruno Le Maire

The latter does not hope to stop there. He therefore calls for the abolition of the mandatory margin of 10% on products. This measure, which was implemented to support producers, no longer seems to be adapted to the current situation, according to him. On the contrary, the resurgence of the price war and competition between brands could help reduce inflation.

Everyone needs a new inventory in the summer or even fall to get a clearer picture of the situation. The effects of the war in Ukraine and a possible embargo on Russian oil will be known at this time.

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