Preparation for a ‘ceiling price’ call to markets in England

It was stated that British Prime Minister Rishi Sunak will ask retailers to apply a ceiling price to basic food products such as milk and bread as part of the fight against the cost of living.

According to the British Telegraph’s report, Sunak’s team has begun work on a plan to ensure that “the lowest possible” ceiling price is applied to some basic food products.

The plan, which is reported to have been created based on a similar practice in France, will be based on the voluntary participation of supermarkets.

In this context, Sunak will ask the markets to freeze the prices of basic food products such as bread and milk in order to control food prices, which have recently become the main source of inflation, and to prevent the cost of living.

According to data released last week in the UK, annual inflation fell less than expected to 8.7 percent in April. In March, inflation was 10.1 percent.

Despite the decline in inflation, food inflation continued to be high at 19.1 percent. Food inflation, which was 19.2 percent in March, had reached the highest level of the last 45 years.

British Finance Minister Jeremy Hunt also stated that food prices are still rising very rapidly, adding, “Food inflation is at an alarmingly high level.” had made the assessment.

While the British government aimed to reduce inflation to 2 percent and keep it at this level, the Bank of England increased the interest rate from 4.25 percent to 4.50 percent by increasing the interest rate for the 12th time in a row at its meeting on 11 May as part of the fight against inflation.