# UK competition watchdog steps up examination of grocery prices Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-05-15 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: UK competition watchdog examines rising grocery prices Meta Description: Britain's competition watchdog is intensifying its scrutiny of grocery prices amid record-high food price inflation, aiming to ensure fair competition and URL: https://financedigest.com/uk-competition-watchdog-steps-up-examination-of-grocery-priceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-05-15t131358z1lynxmpej4e0icrtroptp4britain-dailylife-1736814014765-compressed.jpg) LONDON (Reuters) -Britain’s competition watchdog will step up its work looking into [grocery](https://www.financedigest.com/fmi-finds-the-market-is-fuelled-by-rising-internet-usage-and-explosion-of-digital-payments-india-online-grocery-market-is-to-register-a-32-7-of-cagr-through-2032.html) prices, but has so far not seen evidence pointing to specific concerns in the sector, it said on Monday, after food [price](https://www.financedigest.com/german-wholesale-prices-fall-0-6-in-june.html) inflation hit a 46-year high in March. Official data showed UK [food](https://www.financedigest.com/the-natural-food-colors-market-to-witness-germination-of-innovative-spasm.html) [prices](https://www.financedigest.com/german-wholesale-prices-fall-0-6-in-june.html) were 19.1% higher in March than a year earlier, the biggest such rise since August 1977, while in April, [grocery](https://www.financedigest.com/fmi-finds-the-market-is-fuelled-by-rising-internet-usage-and-explosion-of-digital-payments-india-online-grocery-market-is-to-register-a-32-7-of-cagr-through-2032.html) inflation was 17.3%, according to industry data. “Given ongoing concerns about high prices, we are announcing the stepping up of our work in the grocery sector to understand whether any failure in competition is contributing to [grocery](https://www.financedigest.com/fmi-finds-the-market-is-fuelled-by-rising-internet-usage-and-explosion-of-digital-payments-india-online-grocery-market-is-to-register-a-32-7-of-cagr-through-2032.html) prices being higher than they would be in a well-functioning market,” the Competition and Markets Authority said. It said it would focus its [work on areas where people are experiencing the greatest cost of living](https://www.financedigest.com/homebuyers-live-work-and-play-at-neo-stepney.html "Homebuyers live, work and play at NEO, Stepney") pressures. The Bank of England said last week it expected overall [inflation – which remained above 10% in March – to fall](https://www.financedigest.com/kraft-heinz-flags-margin-pressure-from-inflation-shares-fall.html "Kraft Heinz flags margin pressure from inflation, shares fall") more slowly than it had hoped, mostly due to unexpectedly big and persistent rises in food prices. Lawmakers have launched an investigation into the fairness of the country’s [food](https://www.financedigest.com/the-natural-food-colors-market-to-witness-germination-of-innovative-spasm.html) [supply chain](https://www.financedigest.com/the-internet-of-robotic-things-how-iot-and-robotics-are-evolving-to-benefit-the-supply-chain.html "The Internet of Robotic Things: How IoT and robotics are evolving to benefit the supply chain "), while on Tuesday Prime Minister Rishi Sunak, who has pledged to halve overall inflation this year, will host a food summit of farmers, suppliers, retailers and industry bodies to discuss the sector’s issues. Earlier this month, France’s government pledged to take action against [food retailers who fail to pass on lower wholesale prices](https://www.financedigest.com/with-uk-food-price-inflation-at-46-year-high-lawmakers-launch-probe.html "With UK food price inflation at 46-year high, lawmakers launch probe") to consumers. In Britain, the smaller opposition Liberal Democrats party has [called for the government](https://www.financedigest.com/the-network-group-events-calls-on-the-government-to-invest-in-public-awareness-campaign-around-cyber-security.html "The Network Group Events calls on the Government to invest in public awareness campaign around cyber security") to investigate supermarkets’ profits. Supermarket groups, including market leader Tesco, deny claims from consumer groups and [trade unions that they are profiteering](https://www.financedigest.com/forex-trading-how-to-trade-currencies-for-profit.html "Forex Trading: How to Trade Currencies for Profit"), saying they have taken a hit to earnings and have operating margins of 4% or less, while consumer goods firms such as Unilever and Nestle have margins of 16-17%. Separately, the CMA said it had found evidence that weakening [retail competition was contributing to higher fuel prices](https://www.financedigest.com/retail-pricing-software-company-bolsters-leadership-team.html "Retail pricing software company bolsters leadership team") for drivers. It [noted that fuel margins have increased across the retail market](https://www.financedigest.com/the-avocado-market-to-simulate-on-a-stupendous-note.html "The Avocado Market To Simulate On A Stupendous Note"), but in particular for supermarkets, over the past four years. The CMA said it was not satisfied that some supermarkets had been sufficiently [forthcoming in their responses to its road fuel market](https://www.financedigest.com/speaker-cabinets-grilles-and-materials-market-is-witness-unprecedented-growth-in-forthcoming-years.html "Speaker Cabinets, Grilles and Materials Market Is Witness Unprecedented Growth In Forthcoming Years") study. “So we will be calling them in for formal interviews to get to the bottom of what is going on,” CMA CEO Sarah Cardell said. (Reporting by James Davey and Yadarisa Shabong; editing by Paul Sandle and Sharon Singleton) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---