MPs are to investigate supermarkets following accusations that they are profiteering from hiking prices amid soaring inflation.
As the average price of food and non-alcoholic beverages saw the biggest increase in over 45 years, the cross-party Environment, Food and Rural Affairs (EFRA) committee will look into how profitability and risks are shared through the food supply chain.
It will investigate the existing government system of monitoring and regulation and the impact of external factors on the supply chain, such as imported food and global commodity prices, will also be examined.
As food prices have risen by 15.7% year on year, the committee will look at issues throughout the supply chain from ‘farm to fork’, taking evidence from farmers, manufacturers, retailers, consumers and the government.
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EFRA committee chair Sir Robert Goodwill MP said: “During these times of high food price inflation, 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.
“We know that consumers are paying higher prices, but the question is – are the other parts of the supply chain unduly benefitting from that, or are some of them also feeling the squeeze?
“We need to strike the right balance to ensure healthy, affordable – and preferably British-produced – food is available to all of us,” he added.
Tomorrow (16 May), prime minister Rishi Sunak is to meet with farmers and supermarket bosses to look into the demands of the National Farmers’ Union (NFU), including boosting home-gown food production and the relationship between farmers and supermarkets.
This comes as Sainsbury’s, Tesco and Lidl have dropped the price of bread and butter as commodity prices start to fall for wheat and butter.
In a video call held by The Treasury and governor of the Bank of England, leading supermarkets agreed that food price inflation is “past the peak” and that prices would soon start to drop.
