CMA finds high food inflation is not driven by weak competition
A new report from the Competition and Markets Authority has shown that retailer competition issues have not been driving up food inflation.
Over the past two months, the organisation has assessed how retail competition is working in the UK grocery sector.
While food price inflation is at historically high levels, the CMA said the evidence it collected shows that competition issues have not been driving this.
The organisation also looked at unit pricing across 11 supermarkets and seven variety retailers and found compliance concerns with the Price Marking Order for all those reviewed. However, for some retailers, the issues were relatively minor.
The CMA has now set out recommendations on unit pricing rules and is calling on the government to reform the legislation.
Sarah Cardell, chief executive of the CMA, said: “With so many people struggling to feed their families, it’s vital that we do everything we can to make sure people find the best prices easily.
“We’ve found that not all retailers are displaying prices as clearly as they should, which could be hampering people’s ability to compare product prices.
“We’re writing to these retailers and warning them to make the necessary changes or risk facing enforcement action. The law itself needs to be tightened here, so we are also calling on the government to bring in reforms.”
