Supermarket insiders have again defended the sector against accusations of profiteering.
Responding to calls from prime minister Rishi Sunak for the grocers to behave 'responsibly and fairly', trade body the British Retail Consortium said prices were being cut even though profit margins were “extremely tight”.
In a statement, Helen Dickinson, chief executive at the BRC, said: “Supermarket margins remain extremely tight as retailers try to absorb the worst of the rising costs and protect their customers.
“Despite some prices continuing to rise, we are seeing a regular stream of price cuts being reported by the media as retailers do their best to ease the cost-of-living pressures faced by their customers.”
Rising food prices are one reason why the UK’s rate of inflation is stubbornly refusing to drop, with May’s rate of 8.7% unchanged from the previous month.
Prices of food rose at the fastest rate for 45 years in March and even with a slight decline were still rising at an annual rate of 18.4% last month.
Consumer campaign group Which?, which has been highlighting price rises being pushed through by the grocers, said PM Sunak was “right to focus on supermarkets” in the fight against inflation.
Ele Clark, Which?’s retail editor, told the Standard supermarkets must commit to stocking essential budget ranges in all their stores, particularly in areas where people are most in need, as well as make pricing much clearer.”
In response, Dickinson said rather than focus on supermarkets ministers should make changes to policies that push up costs for businesses, including a deposit return scheme in England and an increase to business rates.
“Most importantly, government should extend the timelines for the £2 billion-a-year reformed packaging levy to ensure a fit-for-purpose scheme that improves recycling rates.”