Skip to content
Search

Latest Stories

Lawmakers launch probe as food price inflation at 46-year high

Supermarket groups, including market leader Tesco, deny claims that they are profiteering, saying they have taken a hit to earnings

Lawmakers launch probe as food price inflation at 46-year high

British legislators initiated an inquiry on Friday (12) to assess the equity of the food supply chain in the country, aiming to comprehend the reasons behind households experiencing the most substantial food price inflation since the 1970s.

The Environment, Food and Rural Affairs (EFRA) committee, consisting of members from various political parties, operating within the House of Commons, will scrutinise the distribution of profits and risks throughout the entire food production process, as well as the extent of regulatory measures.


Additionally, the inquiry will investigate the influence of external factors on the supply chain, including the importation of food and fluctuations in global commodity prices.

"When many people are struggling to give their families good food at a reasonable price, it's our job as a committee to get to the bottom of what’s going on," Robert Goodwill, chair of the EFRA Committee and a lawmaker from the ruling Tory party, said.

“We know that consumers are paying higher prices, but the question is - are the other parts of the supply chain unduly benefiting from that, or are some of them also feeling the squeeze?" he said.

Earlier this month, France's government pledged to take action against food retailers who fail to pass on lower wholesale prices to consumers.

In Britain, the smaller opposition Liberal Democrats party has called for the government to investigate supermarkets' profits.

Supermarket groups, including market leader Tesco, deny claims that they are profiteering, saying they have taken a hit to earnings and have operating margins of 4 per cent or less, while major consumer goods firms such as Unilever and Nestle have margins of 16-17%.

Official data showed UK food prices were 19.1 per cent higher in March than a year earlier, the biggest such rise since August 1977, while in April, grocery inflation was 17.3 per cent, according to industry data.

The Bank of England said on Thursday (11) it expected overall inflation - which remained above 10 per cent in March - to fall more slowly than it had hoped, mostly due to unexpectedly big and persistent rises in food prices.

Food retailers have said they expect prices to rise in 2023 overall but the rate of inflation will decline through the year.

Prices for some products that have seen the sharpest rises, such as milk, butter and bread, have actually started to fall.

The EFRA committee does not have the power to change legislation but it can take oral and written evidence from farmers, manufacturers, retailers, the government and consumers, and issue a report with recommendations.

(Reuters)

More For You

Anil Agarwal

Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)

Getty Images

Anil Agarwal’s Vedanta Resources signs £438 million refinancing deal

VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.

The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.

Keep ReadingShow less
Trump-Getty

Trump said that while deals are being made with some countries, others may face tariffs.

Getty Images

Trump says major trade deal with India may be finalised soon

US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.

“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.

Keep ReadingShow less
Asda suffers nearly £600m loss as debt and IT costs surge

Asda co-ownerMohsin Issa. (Photo: Asda)

Asda suffers nearly £600m loss as debt and IT costs surge

ASDA, one of Britain’s largest supermarkets, has reported a pre-tax loss of £599 million for 2024, swinging sharply from a £180 million profit the previous year.

The loss comes despite total sales rising by over £1 billion to £26.8bn, as the retailer faces mounting debt costs, falling sales, and spiralling spending on a major IT overhaul, the Telegraph reported.

Keep ReadingShow less
Mounjaro

Mounjaro, or tirzepatide, is part of a new class of weight-loss medications, with trials showing patients losing an average of 20 per cent of their body weight after 72 weeks.

Reuters

Lilly to sell Mounjaro pens in India as Wegovy enters market

ELI LILLY said on Thursday that it has received approval from India's drug regulator to launch pre-filled injector pens of its weight-loss drug, Mounjaro.

The move gives the company more options to compete with Novo Nordisk, which recently launched its weight-loss drug Wegovy in the country.

Keep ReadingShow less
Grant Thornton's Anuj Chande urges UK firms to tap booming India

Anuj Chande

Grant Thornton's Anuj Chande urges UK firms to tap booming India

INDIAN companies are well placed to support the UK’s economic growth, Eastern Eye has been told by Anuj Chande, partner and head of the South Asia Business Group at Grant Thornton.

He was speaking after the publication of Grant Thornton’s India Meets Britain Tracker 2025: The latest trends in Indian investment in the UK, which was released last week. While companies in India need little encouragement to enter the UK market, the reverse is not true.

Keep ReadingShow less