The government is “ready” to update pricing rules after the CMA review, says Hunt
The government is “ready” to update pricing rules after an independent review, Jeremy Hunt said in his meeting with supermarkets amid soaring grocery inflation.
In a conversation with industry representatives on Tuesday, the chancellor expressed her concerns about skyrocketing food prices.
He also met with Britain’s competition regulator over its investigation into road fuels and “amplifying” work on food prices, the Treasury said.
In a reading following Mr Hunt’s meetings, the department said: “The Chancellor … met with the independent Competition and Markets Authority (CMA) and learned more about the scope of her investigations into road fuels and her intensifying work on food prices, including …” the possible actions that could be taken by the CMA.
“The Chancellor confirmed that the government stands ready to update pricing rules and guidance based on the CMA’s review of unit pricing.”
This comes amid warnings that food prices will overtake energy bills as the ‘epicenter’ of the cost-of-living crisis and inflation currently stands at 19.2%.
The Resolution Foundation said on Friday rising costs would force low-income households to eat less as store-brand staples became unaffordable for some.
Meanwhile, the analysis of Which? April prices revealed that some meats, yoghurts and vegetables were among the items that doubled in price from a year earlier.
The CMA said last week it had seen no evidence of specific competition concerns in the food sector “at this point in time”, but that it was “important to ensure weak competition does not exacerbate the problems”.
She will provide information about the current status of her work in the coming months.
The regulator also announced an update to the road fuel market survey that began last year, saying there were indications that higher forecourt prices were not solely due to factors beyond retailers’ control, but “appear to reflect, in part, some moderation in the market.” reflect competition”. the retail road fuel market”.
The CMA also reviews unit prices in supermarkets to ensure retailers are following rules that help consumers accurately compare products and choose the best value for money.
The Chancellor underscored the widespread concern of the British public at current levels of food prices and their impact on household budgets, particularly for the most vulnerable
Once the CMA review is complete, the government will consider updating pricing rules, including by strengthening the Price Marking Order 2004, the Treasury Department said.
Legislation on the pricing of goods prescribes a number of different units that can be used depending on the type of product, which can confuse shoppers.
According to the Treasury Department, food manufacturers have agreed to “continue to work with senior government ministers” to discuss possible measures to ease the pressure on budgets.
The reading said: “The Chancellor underscored the widespread concern of the British public at current levels of food prices and their impact on household budgets, particularly for the most vulnerable.
“He listened to manufacturers’ views on the causes of food inflation, reiterated support for the UK food sector announced by the Prime Minister last week and agreed that food manufacturers will continue to discuss possible government and UK action with senior government ministers industry can take steps to ease the pressure on consumers.”
https://www.standard.co.uk/business/business-news/government-stands-ready-to-update-pricing-rules-after-cma-review-says-hunt-b1083213.html The government is “ready” to update pricing rules after the CMA review, says Hunt
