Sunak ‘to urge supermarkets to cap price of food basics amid inflation’
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owning Street is believed to be drawing up plans to encourage supermarkets to introduce voluntary value caps on meals staples in a bid to assist with the cost-of-living disaster.
The scheme would intention to get retailers charging the bottom attainable quantity for some primary merchandise like bread and milk, the Sunday Telegraph reported.
A No 10 supply mentioned the plans are at “drawing board stage” and burdened they might not contain Government-imposed value controls.
A Treasury supply advised the Sunday Telegraph: “Food inflation is much more resilient and difficult to get rid of than we anticipated.”
Supermarkets are anticipated to be allowed to pick out which gadgets they might cap and solely participate within the initiative, modelled on related settlement in France, on a voluntary foundation, the paper reported.
It comes after Chancellor Jeremy Hunt backed rate of interest hikes, even when they danger of plunging the UK into recession, with the intention to fight hovering inflation.
Though down from 10.1%, the Consumer Prices Index of inflation stays stubbornly excessive at 8.7%, whereas specialists have warned that alarmingly costly meals is about to overhaul vitality payments because the “epicentre” of the cost-of-living disaster.
Food costs are anticipated to maintain rising, having already elevated by 19.1% within the yr to March, inserting extra strain on households.