While the debate continues in the French parliament concerning the price cap on non-food products, the FEBEA continues to advocate for a strict control of super-promotions. To support its position, it has just shared the figures from a study conducted by the firm Xerfi, which shows that the cap on discounts has an invisible impact on inflation.
The federations representing non-food product manufacturers (FEBEA, FHER and Group’Hygiène) have commissioned the research firm Xerfi to evaluate the effect on inflation of measures to cap promotions for their products sold in large and medium-sized stores.
The simulations carried out show that an increase of 1% in the average price of all the products concerned sold on promotion would contribute 0.00239 points to general inflation, i.e. “an impact that is practically invisible in the statistics”, as XERFI concluded.
The general inflation in France in 2022 was +5.2% and +10% for food.
“The weakness of this impact is explained in particular by the very low share that the products concerned represent in the total consumption of households (1.97% in 2021), explains the consulting firm.
For the professional federations FHER, FEBEA and Group’hygiène, “this study brings reason to the current debate on trade relations and the clear demonstration that the supervision of promotions would not cause a significant effect on inflation. Promotional overkill is harmful for the food and non-food sectors alike, destroying value, jobs and industrial sites in France. By maintaining very interesting promotion levels for the consumer (up to -34%), the senators have understood that it is possible not to …
