The French government has reached an agreement with local grocery companies to reduce the prices of essential foodstuffs.

The French finance minister Bruno Le Maire has announced major discounts on household goods for three months to help French residents cope with surging inflation.

"The fight against inflation is everyone's business," Le Maire said. "This is a visible and strong agreement to protect our citizens."

Bruno Le Maire dismissed a proposal to cut France's sales tax, saying it was too costly and would not be effective in reducing the price of goods.

France's overall inflation rate is expected to hit 13% in the first half of 2023.

In neighboring Spain, food cost inflation has reached 15 percent, compared with more than 6 percent nationwide. A third of Spanish households are cutting back on fish and meat in response to inflation, and many are switching to cheaper canned and frozen products.

Alexandre Bompard, Carrefour's chief executive, said price cuts would be decided by individual chains, mainly involving private labels, as this was where the most leeway was. The measures taken by different retailers are naturally different, and they will propose the most effective promotion activities according to their actual situation.

Shares in Carrefour and rival Casino Guichard Perrachon SA fell more than 1 percent after the government announced the measures.