Inflation in France could reach 4% by year-end, warns Michel-Édouard Leclerc

Michel-Édouard Leclerc, President of the strategic committee for E. Leclerc centers, has warned that inflation could reach 4% by the end of the year. This projection follows an average European inflation rate of approximately 3.8%.

Economist Marc Touati supports this outlook, noting that the necessary conditions for 4% inflation are present. Touati identifies three primary drivers: rising oil prices, second-round effects on raw materials—particularly fresh food products—and third-round effects on goods and services.

Leclerc noted that price increases are particularly visible in the food sector, specifically regarding fruits and vegetables. He attributed recent volatility in produce prices to summer droughts, which resulted in lower yields and smaller product sizes. He emphasized that while inflation impacts the cost of quality food, the company continues to support local producers through various alliance contracts.