why it is illusory to hope for a return to “before prices”

by time news

2023-05-15 11:00:39

The price of a piece of meat, which has jumped 30% in one year according to NielsenIQ data, will not drop 30% once inflation subsides. stock.adobe.com

ANALYSE – If they announce their determination to “break inflation”, the leaders of the large distribution prepare the spirits with a durable increase in the prices.

«We will never go back to the prices before!“. Michel-Édouard Leclerc repeated this warning three times on the BFMTV set last week, backing it up with a “I insistfull of resolve. Same observation for Arnaud Rousseau, the president of the National Federation of Farmers’ Unions (FNSEA), this Monday on RTL: “No, we will not find the prices before, in particular because of the additional charges.»

For his part, the much listened to boss of the E.Leclerc centers, sometimes mocked as Minister of Consumption, is convinced that the players in the mass distribution will manage to “break inflation”, an observation on which his colleagues from Intermarché, Système U and Lidl agree. But the interested party bluntly specifies that this slowdown in the rise in prices should not be confused with a fall in prices. The difference is subtle, but presides over the destinies of your portfolio. Le Figaro explains to you.

A well-known distinction among economists is…

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