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| Tesco, Sainsbury's and rivals say they are not making too much money | |
| (32 minutes later) | |
| Supermarket executives have denied making too much money from soaring prices, telling MPs the industry is the "most competitive we have ever been". | |
| Bosses from Tesco, Sainsbury's, Asda and Morrisons were grilled on Tuesday over high food and fuel prices. | |
| The supermarkets rejected claims of making excess profits and said they were shielding customers from the full impact of rising costs. | |
| The competition watchdog is looking at if food and fuel prices are too high. | |
| It is examining whether a "failure in competition" has meant customers are overpaying. | |
| Supermarket executives were quizzed by MPs on the Business and Trade Committee on Tuesday on why food prices were still rising, despite some wholesale costs falling. | |
| Food prices rose by 14.6% in the year to June, according to the British Retail Consortium, which represents supermarkets. That was down from 15.4% in the year to May, but it does not mean prices are falling, just that they are rising at a slower pace. | Food prices rose by 14.6% in the year to June, according to the British Retail Consortium, which represents supermarkets. That was down from 15.4% in the year to May, but it does not mean prices are falling, just that they are rising at a slower pace. |
| Higher grocer prices remain a key reason why the overall rate of inflation in the UK remans stubbornly high. | |
| Chairman Darren Jones said that Tesco, Sainsbury's and Asda had all made large profits compared to before the Covid pandemic, but said Morrisons had not. | |
| But the supermarkets argued they were doing all they could to protect customers from higher costs resulting from higher energy, labour and commodity prices. | |
| Jane Hunt, a Conservative MP, asked executives if they were "in fact a cartel" and were colluding to setting prices. | |
| In response, Kris Comerford, chief commercial officer for Asda, said UK retail was "the most competitive market", a sentiment echoed by executives from Sainsbury's and Tesco. | In response, Kris Comerford, chief commercial officer for Asda, said UK retail was "the most competitive market", a sentiment echoed by executives from Sainsbury's and Tesco. |
| All four supermarket bosses said they did not support a price cap on essential foods, a plan which is being considered by the government. | All four supermarket bosses said they did not support a price cap on essential foods, a plan which is being considered by the government. |
| Five hacks to save on your food shop | Five hacks to save on your food shop |
| Why is UK inflation so high? | Why is UK inflation so high? |
| Politicians, trades unionists and the governor of the Bank of England have all questioned why supermarket prices have not fallen as rapidly as the wholesale cost of ingredients such as wheat. | Politicians, trades unionists and the governor of the Bank of England have all questioned why supermarket prices have not fallen as rapidly as the wholesale cost of ingredients such as wheat. |
| Some have suggested that retailers might be failing to pass on savings and are banking the profit instead. | |
| Supermarkets have previously said they have cut prices when possible and added that falls in wholesale costs take time, typically three-to-nine-months, to filter through to the shelves. | |
| Helen Dickinson, boss of the British Retail Consortium, said the trade body expected food inflation to drop "to single digits later this year". | |
| Most of the big chains have recently introduced high profile price cuts to staples, with Sainsbury's on Monday the latest to announce it was investing £15m to reduce the cost of basics such as rice, pasta and chicken. | Most of the big chains have recently introduced high profile price cuts to staples, with Sainsbury's on Monday the latest to announce it was investing £15m to reduce the cost of basics such as rice, pasta and chicken. |
| Tesco, Morrisons, M&S, Aldi and Lidl have all reduced prices on basic foods such as bread, milk and butter in the past few months. | Tesco, Morrisons, M&S, Aldi and Lidl have all reduced prices on basic foods such as bread, milk and butter in the past few months. |
| However, some items such as milk and eggs remain relatively expensive compared to pre-Covid prices. | However, some items such as milk and eggs remain relatively expensive compared to pre-Covid prices. |
| Jamie Keeble, co-founder of sausage and burger maker Heck which supplies most of the major supermarkets, told the BBC's Today programme that the price of pork was expected to remain high for the next 18 months. | Jamie Keeble, co-founder of sausage and burger maker Heck which supplies most of the major supermarkets, told the BBC's Today programme that the price of pork was expected to remain high for the next 18 months. |
| He said the only way supermarkets could lower their prices was by asking suppliers to cut costs, but he added: "We're certainly not in the position to start giving cost decreases on our products. | He said the only way supermarkets could lower their prices was by asking suppliers to cut costs, but he added: "We're certainly not in the position to start giving cost decreases on our products. |
| "At the end of the day, [the supermarkets] are going to have to take a cut in their margins if they really want to lower the prices on the shelf, that's the only way to do it." | "At the end of the day, [the supermarkets] are going to have to take a cut in their margins if they really want to lower the prices on the shelf, that's the only way to do it." |
| Separately, all four supermarket executives backed calls for more transparency on fuel prices, after MPs highlighted that prices for petrol and diesel were lower in Northern Ireland as a result of data being shared widely with drivers. | |
| A study by academics at the London School of Economics last month found nearly a third of food price inflation since 2019 was due to Brexit. | A study by academics at the London School of Economics last month found nearly a third of food price inflation since 2019 was due to Brexit. |
| How is the price of food changing your diet? You can share your experiences by emailing haveyoursay@bbc.co.uk. | How is the price of food changing your diet? You can share your experiences by emailing haveyoursay@bbc.co.uk. |
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| Related Topics | Related Topics |
| Companies | Companies |
| Retailing | Retailing |
| Sainsbury's | Sainsbury's |
| Inflation | Inflation |
| Supermarkets | Supermarkets |
| Food | Food |