Sunak ‘to induce supermarkets to cap value of meals fundamentals amid inflation’

Plans to encourage supermarkets to introduce voluntary value caps on meals staples in a bid to assist with the price of residing disaster are being drawn up by Downing Street, in response to stories.

The scheme would intention to get retailers charging the bottom potential quantity for some primary merchandise like milk and bread, the Sunday Telegraph reported.

A Number 10 supply stated the plans are at “drawing board stage” and wouldn’t contain government-imposed value controls.

A Treasury supply informed the Sunday Telegraph: “Food inflation is much more resilient and difficult to get rid of than we anticipated.”

Read extra:
Spending calculator – See which prices have gone up or down
Food inflation hits another record high as pressure mounts on home finances
Inflation eases but still remains above 10% as food costs at 45-year high

Supermarkets are anticipated to be allowed to pick out which gadgets they’d cap and solely participate within the initiative, modelled on comparable 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, as a way to fight hovering inflation.

Although down from 10.1%, the Consumer Prices Index of inflation stays excessive at 8.7%, whereas consultants have warned that alarmingly costly meals is about to overhaul power payments because the “epicentre” of the price of residing disaster.

Food costs are anticipated to maintain rising, having already elevated by 19.1% within the yr to March, putting further strain on households.