Inflation or ‘greedflation’ asks a Lib-Dem MP as food prices soar

THE UK’S Competition and Markets Authority should investigate whether supermarkets were profiteering, Liberal Democrat Ed Davey said.

Industry statistics revealed that food price inflation shot up to a record high of 15.7 per cent in April, adding to pressure on households countrywide, Davey claimed.

According to government figures, food and drink prices rose by almost 20 per cent in the 12 months ending in March, the fastest annual rate since 1977. Lib Dem analysis also showed that a typical shop had risen by almost £12 (€13.6) a week in the last year.

Supermarkets have raked in billions of pounds in profits, Davey maintained, and although the biggest grocers recently reported falling profits, experts said more could be done to help struggling shoppers.

Union leaders also maintained that supermarket bosses were squeezing customers to benefit from “greedflation” where firms exploit high inflation to create excessive profits.

Meanwhile, Sainsbury’s announced £690 million (€782.3 million) profits for the year until March, with profit margins slipping from 3.4 to 2.99 per cent, as chief executive Simon Roberts insisted that the chain was determined to fight inflation.

Tesco’s profits of £753 million (€854 million) were half those of the previous year, while chief executive Ken Murphy declared that the retailer was “robustly challenging every cost increase” with suppliers and had not passed on all of its additional costs to customers.