The UK Treasury is putting pressure on supermarkets to introduce voluntary price caps on basic goods such as bread, eggs and milk, the Financial Times (FT) reported, citing four sources.
They said that in response, the government, formed by members of the Labour Party, promises to ease several requirements on packaging and the range of unhealthy foods on store shelves. As the article notes, officials say that the money saved from such relaxations could be used to control the prices of basic goods in a situation where food prices are rising.
Supermarket chain executives have reacted extremely negatively to the proposal. Thus, representatives of grocers in Scotland, where the government is also considering price controls in stores, called the idea a 1970s-style trick. At the time, due to high inflation and the oil crisis, the government introduced price controls on a number of products, but these measures were ultimately deemed unsuccessful and were repealed.
Inflation for food products in the UK rose to 3.7% at the end of April, amid US and Israeli strikes on Iran, which led to a rise in prices in the UK. As the motoring company RAC reported on 19 May, the average price of petrol in the UK set a new record since the start of the conflict - a litre of unleaded petrol costs £1.5852 ($2.12), compared to £1.32 ($1.77) before 28 February.