Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 05 11T230901Z 2 LYNXMPEJ4A10S RTROPTP 4 BRITAIN PRICES
2023 05 11T230901Z 2 LYNXMPEJ4A10S RTROPTP 4 BRITAIN PRICES

With UK food price inflation at 46-year high, lawmakers launch probe


With UK food price inflation at 46-year high, lawmakers launch probe

By James Davey

LONDON (Reuters) – British lawmakers launched an investigation on Friday into the fairness of the country’s food supply chain, seeking to understand why households are facing the highest levels of food price inflation since the 1970s.

The cross-party Environment, Food and Rural Affairs (EFRA) Committee of the House of Commons, the lower chamber of parliament, said it would examine how profits and risks are shared from “farm to fork”, and the level of regulation.

It will also examine the impact of external factors on the supply chain, such as imported food and 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 Conservative 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% or less, while major consumer goods firms such as Unilever and Nestle have margins of 16-17%.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

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

The Bank of England said on Thursday it expected overall inflation – which remained above 10% 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.

 

(Reporting by James Davey; Editing by Susan Fenton)

 

Recent Post: