Amid a cost-of-living crisis in which food and fuel costs are higher than they have been for generations, supermarkets have promised food prices have peaked.
A crisis call with the Treasury came after Bank of England governor Andrew Bailey criticised high food prices for driving inflation. Interest rates were raised for the 12th consecutive time yesterday (Thursday May 11) from 4.25% to 4.5%.
The Times reports that Government ministers are concerned food price inflation has persisted more than originally claimed. It is currently at a 46-year high, at its highest level since August 1977.
But now supermarkets have indicated the cost of a weekly shop might fall in the next few months.
How has the cost of living affected your food shop?
Additionally, an investigation has been launched into why food prices remain so high in the UK with the Government having vowed to halve inflation by the end of the year.
As that target seems ever more unlikely, families endure cost-of-living struggles as their food shop has rocketed by 20%. Prices for other basic household products in supermarkets have even doubled in the last year.
Nonetheless, the Environment, Food and Rural Affairs Committee said it will assess how profits and risks are shared in the supply chain.
Why does food cost so much now?
It will also examine external factors, such as imported food and global commodity prices – as well as the effects caused by the Russian war with Ukraine, and Brexit. Shortages of fruit and vegetable shortages have also been partially blamed on poor weather conditions elsewhere in the world.
A Government source reportedly told The Times: “Supermarkets in Britain are highly competitive. But the wholesale price of goods has increased significantly due to energy and labour costs.”
Earlier this month, Liberal Democrat leader Sir Ed Davey accused Britain’s largest supermarkets of profiteering. He called on the Competition and Markets Authority to investigate claims chains use market power to raise prices even further.
Read more: One in 10 youngsters admit to shoplifting as cost-of-living crisis deepens
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