The British government is exploring the possibility of asking retailers to cap the prices of basic food items, including bread and milk, as the cost of these essentials

continues to rise at double-digit rates, according to a report by the Telegraph. Prime Minister Rishi Sunak's office is reportedly in discussions with supermarkets to establish a deal similar to one implemented in France, where major retailers charge the "lowest possible amount." However, Health Minister Steve Barclay indicated on BBC TV that price controls were not his understanding of the situation.

The report cited sources within the government, but there has been no official response from the Prime Minister's office to Reuters' request for comment. Barclay stated in his BBC TV interview that the government is working constructively with supermarkets to address concerns about food inflation and the cost of living while considering the impact on suppliers.

Food prices in Britain have experienced the highest inflation rate in Western Europe, with prices rising over 19% in the past year, marking the most severe increase since the 1970s. Rising energy prices, driven in part by the conflict in Ukraine, have further strained household budgets. In response, major supermarkets such as Tesco and Sainsbury's have announced price cuts on select food items in recent weeks.

The British Retail Consortium (BRC), which represents major supermarkets, attributed many of the costs to the government's new regulations and issued a statement urging the government to simplify rules instead of reintroducing price controls reminiscent of the 1970s. Andrew Opie, from the BRC, emphasized that such controls would have little impact on prices, as high food prices result from the soaring costs of energy, transportation, labor, and the prices paid to food manufacturers and farmers. Photo by J Taylor, Wikimedia commons.