Download
French inflation prompts baguette price hike
Ryan Thompson in Chartres, France

Translating...

Content is automatically generated by Microsoft Azure Translator Text API. CGTN is not responsible for any of the translations.

Error loading player: No playable sources found
02:20

Even the humble baguette is not immune to Europe's inflation crisis. 

The iconic French bread is seeing its price hiked up by bakers who are struggling to compensate for soaring production costs.

The long loaves are traditionally priced under one euro ($1.10) in bakeries outside of major French cities, with the most recent national average hovering around 90 euro cents ($0.97).

"The French baguette is an important marker, like a liter of gas," said Franck Morel, a baker near Chartres, France.

Morel was forced to raise his baguette price by 20 cents to €1.10 ($1.19) in February.

He says with energy costs skyrocketing and pressure to raise wages intensifying, he had no other choice. 

READ MORE

Floating train tipped for speed record

Telling China's story: Michael Wood

Sweden and Finland look towards NATO

"We're obligated to raise the price because of inflation," he said. "There's quality behind it, and behind the quality is my staff, apprentices, shop rental, and the seller who welcomes you." 

While it may seem like a few pennies, the impact will be significant for many French families.

Baguettes are a staple at breakfast, lunch, and dinner – so much so that French bakers rarely adjust the price or undercut other producers. 

When supermarket E.Leclerc announced in February that it would sell baguettes for 29 cents, the saga became a national debate. 

Breadmakers insisted that the supermarket chain couldn't be using quality ingredients from the European Union and still sell the bread at that price. 

 

Wheat demand at historic levels

Record-high prices for bushels of barley have put a further dent in bakeries' production costs. 

Wheat is normally not a major cost in the production of a baguette, but global markets have seen the value of the commodity explode over the past 12 months. 

The war in Ukraine has inflated prices further because fighting has forced a near-stoppage of wheat harvesting in Ukraine, which is at the heart of Europe's so-called 'bread basket'. 

Ukraine and Russia together account for about 30 percent of the world's wheat exports and the longer the conflict continues, the more shortages are expected. 

"We don't choose the price at which we sell our wheat. It's the market that tells us, here's your wheat today, it's worth this much," said Aurelie Hallain, a wheat farmer.

"It's unfair competition with other European countries because they have lower costs, so it costs them less to produce and they can afford to sell for less than us."

CGTN Europe met Hallain weeks before the Russian attack on Ukraine. 

At the time, she was already struggling to make a profit because of various market factors. She says she needs to apply for French state aid to ensure her farm doesn't have an annual loss. 

With inflation heading upwards, it's an increasing struggle across the board – even for the baguette. 

Search Trends