France may impose taxes on the food industry due to high prices - finance minister

Food inflation has hit a record 15% in recent months and the government is unhappy with retail prices remaining high despite declining commodity prices.

Le Maire said the food industry was making big profits and that it should resume annual negotiations with retailers and lower their prices.

“If someday the food industry doesn’t return to negotiations… we will use every measure at our disposal, including taxes, to recover profits unfairly earned at the expense of consumers,” Le Maire told reporters before a meeting with representatives of large retailers. 

Food prices in France soared after food companies and retailers agreed to a 10 percent price increase in annual negotiations in March, which both sides said was necessary to cover higher production costs .

But with high food prices propping up general inflation, Le Maire has repeatedly called for a resumption of negotiations to ensure that the global fall in commodity prices reaches consumers as well.

Under pressure following an unpopular increase in the retirement age, President Emmanuel Macron's government wants to be seen as tackling everyday citizens' problems, such as rising food prices.