Sunak drops supermarket price cap plan in response to backlash

Prime Minister Rishi Sunak, has decided to abandon his proposal of requesting supermarkets to implement a voluntary price cap on essential commodities. This decision comes in response to a strong backlash from retailers, the Telegraph reported on Wednesday (14).

Last month, the government's intention to regulate food prices, received a vehement response from the British Retail Consortium (BRC), the industry representative.

The BRC contended that such measures would not result in any substantial transformations.

"The government has never been considering imposing price caps. We continue to engage with supermarkets about the best way to support consumers," a British government spokesperson said.

According to sources cited by the Telegraph on Wednesday, British ministers are actively pursuing alternative measures to address the significant rise in food inflation.

These officials have reportedly assured retailers that they have no plans to intervene in pricing matters.

In late May, the competition regulator of Britain informed supermarkets that it was closely examining their earnings to determine the specific supply chains that required closer scrutiny.

This initiative was part of a broader effort to reduce food price inflation.

Asda, Britain's third largest supermarket group, this week froze prices of over 500 products until the end of August, adding to signs that a surge in food inflation is set to abate and even reverse in the coming months.

(Reuters)