{"id":1944835,"date":"2026-05-19T16:24:11","date_gmt":"2026-05-19T13:24:11","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=1944835"},"modified":"2026-05-19T16:24:11","modified_gmt":"2026-05-19T13:24:11","slug":"supermarkets-urged-to-limit-food-prices-by-government","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=1944835","title":{"rendered":"Supermarkets urged to limit food prices by government"},"content":{"rendered":"

[analyse_image type=”featured” src=”https:\/\/ichef.bbci.co.uk\/news\/1024\/branded_news\/ba78\/live\/6c694910-53a3-11f1-962f-7dc94fa2f5d0.jpg”]<\/p>\n

\n
\n
\n
\n
\"GettyGetty Images<\/span><\/div>\n<\/div>\n<\/figure>\n<\/div>\n
\n
\n
\n

UK supermarkets are being urged by the government to limit food prices in return for easing regulations, the BBC understands.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

It is thought the policy would be voluntary and apply to key groceries \u2013 such as eggs, bread, and milk – according to retail industry sources with knowledge of the plans.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

It is understood the Treasury had asked retailers to freeze price rises on certain products in exchange for an easing of packaging policies and a potential delay to rule changes around healthy food.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

The British Retail Consortium (BRC), which represents supermarkets, said the policy would “force retailers to sell goods at a loss”. A Treasury spokesperson said it “will set out more detail in due course”.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

“We want to do more to help keep costs down for families,” the spokesperson added.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

The proposals, first reported by the Financial Times, come after the Scottish National Party (SNP) pledged to introduce a similar policy in Scotland last month. However, its price cap would not be voluntary.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

The BRC dismissed the policy as “1970s style price controls” while one retailer described the idea as “crazy” and the act of a “desperate” government.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

Another told the BBC: “Ultimately what [the government] should do is stop all the other tax burdens and the prices will come down.”<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

The rate of food price rises is currently 3.7% – while the overall rate of inflation stood at 3.3% in March.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

Some industry groups have warned the rate of food price rises could hit nearly 10% by the end of the year.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

One retailer said government policies, including rises in the national living wage and employers’ national insurance contributions, had increased costs in food supply chains.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

Others say price rises are being caused by a surge in fertiliser and animal feed prices since the US-Israel war with Iran effectively blocked their transport through the key Strait of Hormuz waterway.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

Helen Dickinson, BRC chief executive, said there was already “fierce competition between supermarkets”, which had driven down prices. <\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

“The challenge facing retailers is a combination of higher energy and commodity costs resulting from the Middle East conflict, and the soaring cost of the government’s domestic policies,” she added.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

Tougher rules around price gouging<\/h2>\n<\/div>\n<\/div>\n<\/div>\n
\n
\n
\n

The groceries price cap proposal comes as the Chancellor brings forward measures to give the consumer protection watchdog more powers to tackle price gouging.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

The Competition and Markets Authority (CMA) will be allowed to “name and shame” firms who have changed their margins in response to an economic shock.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

It will also get new, rapid investigatory powers to identify firms taking advantage of crises.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

Chancellor Rachel Reeves said on Wednesday: “When global events drive up costs, working families feel it first. <\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n

“I will not tolerate anyone exploiting a crisis to make a quick buck off the back of hard working people.”<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n
\"Your<\/div>\n<\/div>\n<\/figure>\n<\/div>\n<\/article>\n

[analyse_source url=”https:\/\/www.bbc.com\/news\/articles\/c5y7qz806q3o”]<\/p>\n","protected":false},"excerpt":{"rendered":"

[analyse_image type=”featured” src=”https:\/\/ichef.bbci.co.uk\/news\/1024\/branded_news\/ba78\/live\/6c694910-53a3-11f1-962f-7dc94fa2f5d0.jpg”] Getty Images UK supermarkets are being urged by the government to limit food prices in return for easing regulations, the BBC understands. It is thought the policy would be voluntary and apply to key groceries \u2013 such as eggs, bread, and milk – according to retail industry sources with knowledge of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[35,226],"class_list":["post-1944835","post","type-post","status-publish","format-standard","hentry","category-politics","tag-bbc-com","tag-crawlmanager"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1944835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1944835"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1944835\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1944835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1944835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1944835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}