European retailers cut or cap prices as consumers ‘count every penny’

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Eurozone inflation for food, alcohol and tobacco speeds up to 6.4% in April

A shopper in a supermarket in London, Britain. Picture: REUTERS

Price increases have been anywhere between 6% and 20%. Pasta, for instance, has increased by 20%, as have some brands of coffee and chocolate, Michel-Edouard Leclerc said in an interview with French radio broadcaster franceinfo. The CEO of British supermarket group Sainsbury’s told reporters last week shoppers are “watching every penny”.

“Because of the very competitive nature of the grocery market, you will see other supermarket chains trying to keep prices down as much as they can,” the spokesperson said. They will look to recover some of the impact of price cuts in tough negotiations with the food production companies. The talks, which typically would have finished late last year in parts of Europe, have dragged on as supply chain problems and inflation worsened by Russia’s war in Ukraine have complicated agreement.

 

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