Tesco chairman John Allan has become embroiled in an angry row with food producer groups after suggesting they were responsible for soaring prices at the supermarket.
On Sunday, Allan said it was “entirely possible” suppliers were taking advantage of poorer households, sparking a fierce backlash from the food supply industry.
Minette Batters, president of the National Farmers' Union, described Allan’s comments as "almost like he was living in a parallel universe".
"We're seeing a wholesale gas price 650% higher than it was back in 2019 and the cost inflation on the back of that has been absolutely unprecedented. It has dwarfed any price increases to date,” she told the BBC.
Karen Betts, from the Food & Drink Federation, claimed grocery chains were demanding suppliers were being told to open their books by the supermarkets and had to justify price rises “line by line”.
“So I think it is difficult for Tesco to come out and say they think companies might be profiteering."
Annual food inflation leapt to 13.3% in December, up from 12.4% in November, according to the figures compiled by the British Retail Consortium.
A recent report by consumer organisation Which? suggested that Tesco had put prices up by 13.1% over the past twelve months.
Earlier this month, Tesco forecast retail adjusted operating profit in its current year would be between £2.4bn and £2.5bn with retail free cash flow of at least £1.8bn.
Shares rose by 0.2% to 248.5p.