Food price inflation not driven by weak supermarket competition, says watchdog

manchestereveningnews.co.uk:

Historically high food price inflation has not been driven by weak competition among supermarkets but not all retailers are displaying prices as clearly as they should, the competition watchdog has found.

The Competition and Markets Authority (CMA) said a lack of clear display prices could be hampering people’s ability to compare products and has written to retailers warning them to make the necessary changes or risk enforcement action.

It is also calling on the Government to tighten the law around pricing displays. CMA chief executive Sarah Cardell said: “With so many people struggling to feed their families, it’s vital that we do everything we can to make sure people find the best prices easily. “We’ve found that not all retailers are displaying prices as clearly as they should, which could be hampering people’s ability to compare product prices. “We’re writing to these retailers and warning them to make the necessary changes or risk facing enforcement action. “The law itself needs to be tightened here, so we are also calling on the Government to bring in reforms.” Ms Cardell continued: “We’ve also looked at how competition is working across the grocery retail market more widely. “The overall evidence suggests a better picture than in the fuel market, with stronger price competition between all of the supermarkets and discounters. “In the next phase of our work, we will examine competition and prices across the supply chain for the product categories we’ve identified. “We’ll also continue to monitor the situation to ensure that competition remains effective as input costs start to fall.” The CMA announced in May that it was investigating whether “any failure in competition” was leaving consumers paying higher grocery