David Stewart, Executive Director of Markets and Mergers at the UK Competition and Markets Authority (CMA), has sent a letter to supermarkets regarding their plan to make sure competition rules work in grocery stores as the cost of living crisis escalates.
Accordingly, CMA did not encounter any problem violating competition in the retail sector within the scope of the plan it initiated on May 15th. However, due to the concerns created by high food prices, CMA announced that it closely monitors the profitability of supermarkets in order to ensure that consumers can spend safely and to prevent food inflation.
The competition authority stated that it will also examine the product-based inflation sub-indices and their relationship with the trends in input costs.
A report containing product and unit-based costs will be announced.
Starting today, CMA will be in contact with supermarkets and will complete its investigations by the end of June. At the end of July, the institution will release a report containing product and unit-based costs to help consumers stay informed about prices.
Food inflation in the UK was 19.1 percent in April, the second highest level in the last 45 years. Food inflation hit a record 19.2 percent in March.
Last week, the British Telegraph reported that British Prime Minister Rishi Sunak would ask supermarkets to impose price limits on basic food products such as milk and bread, and that a plan was being worked on in this regard.