It turned out that the federal government is planning to introduce a price cap on basic food products. This is an try and fight rising food costs within the face of a raging cost of living crisis.
An agreement with supermarkets and retailers – which could be voluntary – could see essentials similar to bread and milk subject to cost restrictions – and even reductions. Number 10 said corporations wouldn’t be required to implement the cap.
With food inflation at its highest level in nearly 45 years, reaching 19.1% within the 12 months to April, this may very well be a relief for a lot of. While things have calmed down a bit, there’s still a protracted option to go. However, the thought is receiving mixed reviews from experts and retailers alike.
Prime Minister Rishi Sunak has been warned that his ’70s-style price controls
The BRC represents the UK’s largest supermarkets and says food prices reflect increased energy costs. Similarly, inflated transport and labor costs contributed to those increases.
George MacDonald, editor-in-chief of Retail Week, suggests what a cut in food prices could lead on to checks on other obligatory items. He said: “INwould the value cap initiative end here? If they’re introduced, there is no such thing as a logical reason to limit them to food, there are lots of other essentials that the less affluent unfortunately cannot afford.
“Should products similar to toiletries, cleansing products and baby items similar to diapers – that are in high demand from food banks which have increased as consumers’ cost of living fall – even be subject to the value cap scheme?”
Interestingly, the food price ceiling model is predicated on a model previously utilized in France and has already been introduced in Croatia and Hungary.
Last week, Chancellor Jeremy Hunt met with food producers about the price of food within the UK. IN meetingMr Hunt, “underlined the widespread concern of the British public at the present level of food prices and their impact on household budgets”, and the meeting concluded with the Chancellor agreeing that food producers should proceed to work with senior government ministers to take steps to ease the pressure on on consumers.
Many retailers will not be comfortable with the proposal, suggesting that many supermarkets are already making losses to maintain prices reasonable for patrons. While some costs could also be absorbed by the businesses themselves, there is no such thing as a argument that food prices are causing a serious strain on thousands and thousands across the country.
Some people like the thought. On Twitter, user Susanna wrote: “We live in an absurd era where everyone seems to be defending food prices as high as 17% but not accepting a price cap. If supermarkets cannot offer reasonable prices, someone has to intervene.”
User Unity said: “Energy corporations and food producers profit! We need price caps!”
What are your thoughts? Let us know within the comments!
