England (commonwealth) _ Given that food inflation is still “worryingly high,” Rishi Sunak will ask stores to impose price controls on staples like milk and bread.
Downing Street aides are developing policy ideas that are modeled after those that France has implemented, where stores charge the “lowest possible amount” for basic food goods.
Although the Inflation has dropped to single digits for the first time since August, food inflation is still “alarmingly high” and, at 19.1%, is almost at a record high at the level of overall inflation.
The Telegraph was informed by a Treasury insider that “food inflation is much more resilient and difficult to get rid of than we anticipated.”
The administration had initially doubted Mr. Sunak’s intentions to reduce taxes before the next election because they thought inflation would decline more quickly.
According to a source in the Cabinet, “If you don’t have growth, you don’t have the money [for tax cuts].”
Following the release of the most recent inflation numbers, Chancellor Jeremy Hunt stated: “Food costs are still growing too quickly, despite the fact that the IMF stated yesterday that we had taken serious action to combat inflation.
Therefore, in addition to providing families with roughly £3,000 in cost of living assistance this year and last, we must steadfastly adhere to the plan to bring down inflation.
This week, Mr. Hunt stated that he would accept Britain going into a recession if it meant that inflation would decrease.
The idea that plans to force shops to regulate the price of staple foods would be “anti-market” has some people worried.
It’s extremely simple to blame merchants and claim they are making a fortune, yet some of the margins they are running at are not that large, a source told the publication. It’s really close.
The Office for National Statistics (ONS) reported that the decline in inflation, which brought the overall rate down to 8.7%, was mostly caused by steady gas and electricity prices in April.
While the cost of food is rising overall, some staples, like milk and bread, are increasing at a significantly slower rate.
Granulated sugar prices have climbed on average by 47% over the past year, to an average of £1.08, while cheddar cheese prices have increased by 37% (to £3.77).
In addition, price changes were observed with Eggs (12) – 37% price increase (£3.29), a Price rise of 33% for milk (2 pints; £1.30), sliced white bread increased by 28% to £1.39, and whole chicken prices have increased by 23% to £3.79/kg.
