UK Government Discusses Voluntary Grocery Price Freeze with Supermarkets

UK Treasury officials have discussed a voluntary price freeze on staple groceries with supermarket chains. The talks offered regulatory relief in exchange for holding prices steady on items including milk, bread and eggs. Treasury secretary Dam Tomlinson confirmed the discussions on Wednesday. He stated there would be no mandatory price cap on food items.

Rose, former Ocado chairman, called the proposal the "stuff of nonsense" and said it would never work. He warned of unintended consequences from government intervention. The British Retail Consortium said such measures would force retailers to sell goods at a loss. Chief executive Helen Dickinson urged the government to reduce policy costs that raise food prices instead.

8 percent. Some industry groups have projected food price increases nearing 10 percent by year end. Chancellor Rachel Reeves announced plans to expand the Competition and Markets Authority's powers to address price gouging during economic shocks.