Food price cap: Supermarkets will be urged to limit the cost of certain food, according to Government source
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Supermarkets will be urged to price cap certain foods in a bid to tackle the ongoing cost of living crisis. However, the move will be on a voluntary basis, meaning retailers will have the power to choose which items they could charge the lowest amounts for.
A source from Number 10 Downing Street told a national newspaper the plans are at the “drawing board stage” and won’t involve government-imposed price controls. The scheme will instead encourage supermarkets to introduce voluntary price caps on food staples.
Retailers will be asked to charge the lowest prices possible for basic products such as milk and bread, according to the Sunday Telegraph. Speaking to the Sunday Telegraph, a Treasury official said: "Food inflation is much more resilient and difficult to get rid of than we anticipated." Chancellor Jeremy Hunt said he would still back interest rate hikes to combat soaring inflation, even if they risk plunging the UK into recession.
News of a price cap comes as food prices are expected to keep rising. In the year to March, they have already increased by 19.1% as families continue to struggle to afford food.
The Consumer Prices Index of inflation also remains at a high 8.7%. Experts have warned expensive food is set to overtake energy bills as the main contributor to the cost of living crisis.