Food price deflation slowed in France during December, following a year of falling prices, as consumers spent more on premium items such as smoked salmon and foie gras.
According to Barclays European Food Retail Equity Research, food prices at French hypermarkets and supermarkets was 0.48% down on the previous year in December, compared to 1.24% lower in November.
At French hypermarkets, food prices were down 0.37% year-on-year (-1.21% in November), while at supermarkets, prices were down 0.87% (-1.37% in November).
National brand prices continued to fall, by 0.80% (compared to -1.68% in November), while private label prices increased marginally, by +0.09% (-0.53% in November).
'Food deflation in France decelerated in December mainly thanks to significant price increases for some festive products (foie gras +12.7%, smoked salmon +4.3%, seafood 2%) due to limited supply for some product categories,' Barclays said in a statement. 'However, prices of most other product categories remained deflationary during the period.'
Barclays also noted that it is 'wary of believing that December could signal the return of positive food inflation in France.' citing the fiercely competitive retail environment in the country at present.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
