Supermarkets reject calls for price cap amid claims shops are profiteering from inflation
Supermarkets have rejected calls for a price cap and denied they have been making excessive profits during the cost-of-living crisis.
Last week's inflation figures showed that food price rises have slowed slightly but remain at very high 18.4 per cent.Tesco commercial director Gordon Gafa said: “We have not made more profit year-on-year. We have actually made 7% less profit versus our last financial year. It’s important to be clear on that from the outset.”
But Jones pressed: “How can it be possible that you are making hundreds of millions of pounds in additional profit?”Sainsbury’s told the committee it was not passing all the costs of inflation in its supply chain to customers. “In the most recent year we made lower profits, at £690 million – input costs are not being fully passed through to our shelf prices."“We’re generally considered one of the most competitive food markets in the world. I’m not sure what price caps would add to that process, other than bureaucracy.
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