Michel-Edouard Leclerc bets on “less violent” but “structural” inflation

“Barring exceptional events, prices in hypermarkets should be in an increase range of between 2 and 3%” in 2024, says the president of the strategic committee of the centers E.Leclerc.

The boss of the leading French distributor Michel-Edouard Leclerc is counting on inflation “structural” in the coming years, even if the rise in prices will be “less violent” that in the last two years, he said on Saturday March 9, in an interview with West France.

According to the latest figures from INSEE, which must be confirmed on Friday, inflation reached 2.9% over one year in France in February, falling below 3% for the first time in two years. “Barring exceptional events, prices in hypermarkets should be within an increase range of between 2 and 3%” in 2024, he says, confirming his previous estimates.

“We can count on substantial reductions in imported non-food items. Asia is looking for growth outside its borders. It needs to sell and to do so is ready to lower its prices”explains Michel-Edouard Leclerc.

Inflation “won’t disappear”

As for food items, “products based on coffee and chocolate will decline. This will also be the case for products based on cereals. For sugar, we will have to wait a little longer”, he elaborates.

inflation “will not disappear however, (…) we are entering a cycle of ten-year inflation”he adds, adding that “we are going to have to (…) finance the energy transition. Producing in a more virtuous way will cost more.”

“We will have to amortize heavier, more carbon-free investments in smaller markets,” which makes Michel-Edouard Leclerc say that‘”structural inflation will set in.”