Food price cap will not make a difference – retailers

A price cap on essential food items will not address the growing cost of living crisis, retailers have warned, as the government looks to press ahead with its proposal. The British Retail Consortium (BRC) expressed scepticism, stating that such measures would have little impact and could hinder efforts to combat inflation. 

There are no plans for a mandatory price cap, but instead, the government are proposing a voluntary agreement with major retailers, which they hope could potentially reduce prices on basic foods such as bread and milk. 

Supermarkets are expected to have the discretion to choose which items they would cap and if they want to take part in the initiative. But there are doubts as to whether it will be effective, and the proposal has faced criticism from retailers and opposition MPs. 

“This will not make a jot of difference to prices,” Andrew Opie, director of food and sustainability at the BRC said.

“High food prices are a direct result of the soaring cost of energy, transport, and labour, as well as higher prices paid to food manufacturers and farmers,” he added.

“As commodity prices drop, many of the costs keeping inflation high are now arising from the muddle of new regulation coming from government.”