The French government has got supermarkets to agree to a three-month anti-inflation deal, which it said would mean households get to buy certain items "at the lowest possible prices".
Economy minister Bruno Le Maire told media that grocery groups would be allowed to choose which essentials they offer in the anti-inflation basket, but that thge discounts would cost them "several hundred million euros" in lower profit margins.
Analysts at Barclays estimated that the measures to curb inflation "is likely to have a relatively limited impact on the French food retail sector and on retailers' profitability".
Without knowing the details of this calculation, the analysts said they consider that this agreement "will have a muted impact on price competition in France".
One of the biggest French supermarket chains, Carrefour, said at the weekend that it would offer a selection of 200 low-cost items and that there was no need for the government to impose an agreed basket.