Supermarkets urged to limit food prices by government
BBC • • world
Key Points:
- The UK government is reportedly urging supermarkets to voluntarily limit price increases on key groceries like eggs, bread, and milk in exchange for easing packaging regulations and delaying healthy food rule changes.
- The British Retail Consortium (BRC) criticized the proposal, calling it "1970s style price controls" and warning it could force retailers to sell goods at a loss.
- Food prices have risen by 3.7% recently, with inflation at 3.3%, and some industry groups predict food price inflation could reach nearly 10% by year-end due to factors like increased wages, national insurance costs, and supply chain disruptions.
- The policy follows similar moves by the Scottish National Party, though Scotland's price cap would be mandatory rather than voluntary.
- Retailers argue that government tax burdens are a key driver of price rises, and some attribute cost increases to global issues such as the US-Israel war impacting fertilizer and animal feed supply routes.