Prices in stores expected to increase by 4% to 5% due to war in Middle East

Inflation is hitting the shelves. The director of the Consumer Observatory at UFC-Que Choisir estimated a 4% to 5% price increase in the coming months due to the war in the Middle East. This increase will be “smoothed over several months,” stated Gregory Caret in an interview with RMC. While manufacturers and major retailers have agreed on pricing for the entire year starting March 1st, Caret emphasized that “there are still mandatory revision clauses.” If energy and fertilizer prices surge, “we must reopen negotiations, and it must be reflected in prices,” he explained.

In the short term, the first to be affected will be “products with the fastest turnover rates, meaning those with short expiration dates such as dairy products, fresh products, yogurts, etc.,” according to the Consumer Observatory director. French dairy giant Lactalis (brands President, Lactel, Galbani) announced on Thursday that it would have to “reflect” the impact of the Middle East war on its consumer prices while trying to “minimize it based on product categories.”

Next in line will be other sections, such as “everything related to hygiene, beauty, because there are many hydrocarbons in these products, packaging, and even in the production of these products,” stated Gregory Caret. However, he assured that the increase “will not be of the same magnitude” as that experienced following the war in Ukraine in 2022 and 2023, meaning “a 20-25% increase in a little over a year.”