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\n Reading Time:<\/span> 2<\/span> minutes<\/span><\/span><\/p>\n Could the federal government introduce a price cap on food?<\/em><\/p>\n It has emerged that the federal government is planning to introduce a price cap on the value of basic food items. That is an try to battle soaring food costs because the cost-of-living crisis rages on.<\/span>\u00a0<\/span><\/p>\n An agreement with supermarkets and retailers \u2013 which can be voluntary \u2013 could see essentials similar to bread and milk face a cap \u2013 and even a discount \u2013 in price. Number 10 have said there can be no obligation for businesses to implement the cap.<\/span>\u00a0<\/span><\/p>\n With food inflation at the best level for nearly 45 years, hitting 19.1% within the 12 months to April, could possibly be a relief for a lot of. Even though it has eased slightly, there continues to be a protracted solution to go. Nonetheless, the concept is receiving mixed reviews from experts and retailers alike.<\/span>\u00a0<\/span><\/p>\n Prime Minister Rishi Sunak has been warned his \u201cSeventies-style price controls\u201d could cause food shortages and should not make much difference overall, with the British Retail Consortium (BRC) suggesting the plan \u201cis not going to make a jot of difference\u201d.<\/span>\u00a0<\/span><\/p>\n The BRC represents the UK\u2019s largest supermarkets and says food prices are reflective of increased energy costs. Similarly, inflated transport and labour costs have contributed to those increases.<\/span>\u00a0<\/span><\/p>\n George MacDonald, executive editor at Retail Week, suggests a price cap on food could lead on to <\/span>controls on other essentials<\/span><\/a>. He said: <\/span>\u201cW<\/span>here would a price cap initiative end? If introduced there\u2019s no logical reason to limit them to food, there are many other essential items that the less well-off sadly struggle to afford.<\/span>\u00a0<\/span><\/p>\n \u201cShould products similar to toiletries, cleansing materials and baby goods like nappies \u2013 all in high demand on the food banks which have grown as the associated fee of living has borne down on consumers \u2013 also come inside the remit of a price-capping scheme?\u201d<\/span>\u00a0<\/span><\/p>\n Interestingly, the food price cap model relies on one previously utilized in France and has already been put in place in Croatia and Hugary.<\/span>\u00a0<\/span><\/p>\n
\n<\/i> Isobel Lawrance<\/small>
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\n<\/i> thirty first May 2023<\/small>
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