Government Considers Voluntary Price Cap on Basic Food Items

The idea of a cap or freeze on basic food items is reportedly at the "drawing board stage" and would be voluntary, modeled after a similar agreement in France.

Supermarkets would be allowed to select which items they would cap and only participate in the initiative on a voluntary basis.

The British Retail Consortium has expressed doubt over the impact of a price cap, arguing that high food prices are a result of other factors such as energy and labor costs, and that the government should focus on cutting red tape to keep prices low.

The rate of inflation has been steadily rising, with the Consumer Prices Index (CPI) measuring 8.7% in the year to April, down from 10.1% in March but up from 11.1% in October.

Experts have warned that expensive food products are set to overtake energy bills as the "epicenter" of the cost-of-living crisis.

The boss of Sainsbury's has denied that his supermarket has been profiteering, while the chancellor has expressed support for an increase in interest rates to curb inflation and pressure on household budgets.