The head of French food industry lobby ANIA said on Thursday that the latest round of negotiations between retailers and large consumer goods companies was likely to result in price cuts ranging from zero to 1% on average.

"At the end of the negotiation, it looks like we will be between minus 1 and zero," Jean-Philippe Andre told RMC radio.

France has been gripped by a debate over the price of staples, with retailers saying that producers' price increases are unjustified.

The government had demanded retailers and suppliers finish annual price negotiations in January, two months earlier than usual, as it seeks to lower inflation.

The last round of talks between retailers and big suppliers such as Danone or Nestle ended on Jan. 31.

(Reporting by Dominique Vidalon Editing by Tomasz Janowski)