Supermarkets face call for 'profiteering' investigation as food prices soar
UK supermarkets are facing calls for an investigation into claims of “profiteering” after food price rises hit a new record high.
Liberal Democrats leader Sir Ed Davey is calling for the competition watchdog to probe whether food retailers put up the price of goods by more than was necessary.
Analysis by the party suggests a typical weekly family food shop has increased by £12, leading to a higher annual bill of more than £600 for the average household.
It comes after the Office for National Statistics (ONS) said food inflation stood at 19.1% in the year to March - the highest level since 1977.
There are several different measures of grocery price rises.
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The latest BRC-NielsenIQ shop price index found food prices soared 15.7% in the year to April, the highest since its records began.
But analysts at Kantar say grocery inflation dipped slightly to 17.3% according to figures released last month - down marginally from a record 17.5%.
The Lib Dems want the Competition and Markets Authority (CMA) to probe whether profiteering has taken place among big supermarkets and food multinationals.
Sir Ed Davey said: "Under the Conservatives, the cost of the weekly shop is going through the roof while supermarkets are raking in eye-watering profits.
"Millions of families risk being overwhelmed by soaring food prices, coming on top of rising bills and housing costs.
"The Conservatives have no plan to deal with this cost-of-living crisis - instead they're making it so much worse with all their chaos.
"British farmers will not see any extra income from these soaring food prices. These food prices benefit absolutely no one but the supermarket giants.
"We need to bring soaring food prices back under control and offer relief to families. That means cracking down on profiteering by food multinationals and the big supermarkets so customers get a fair deal."
Andrew Opie, Director of Food & Sustainability at the British Retail Consortium, said: “Many supermarkets have seen profits fall in the last year due to the high cost of energy, transport, and labour, as well as higher prices paid to food manufacturer and farmers.
“Despite the squeeze on margins, retailers are investing heavily in lower prices for the future.
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“To further help those impacted by the high cost of living, supermarkets have expanded their affordable food ranges, locked the price of many essentials, and continue to offer support to vulnerable groups.
“When cost pressures facing retailers do eventually ease, retail prices will follow fast as they fiercely compete for market share.”
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