UK Government Urges Supermarkets to Limit Food Price Increases

UK supermarkets are being asked by the government to limit price increases on basic groceries in return for regulatory relief, according to retail industry sources. The Treasury proposed that retailers freeze price rises on items such as eggs, bread, and milk. In exchange, the government would ease packaging policies and consider delaying changes to healthy food rules.

The British Retail Consortium said the measures amounted to 1970s-style price controls that would force retailers to sell goods at a loss. The Treasury declined to comment on the reports. One retailer called the idea crazy and described it as the act of a desperate government. Another retailer told the BBC that the government should reduce tax burdens instead of imposing price limits.

3 percent. Some industry groups have warned that food price rises could reach nearly 10 percent by the end of the year. Retailers cited higher energy and commodity costs linked to the Middle East conflict, along with increases in the national living wage and employers' national insurance contributions.

Helen Dickinson, BRC chief executive, said fierce competition between supermarkets had already driven down prices. The proposals follow a Scottish National Party pledge last month to introduce a similar but non-voluntary price cap in Scotland.