UK PM Sunak looks to cap basic food prices in fight against inflation

UK Prime Minister Rishi Sunak's government is seeking an agreement with supermarkets to introduce price caps on basic food items like bread and milk in order to tackle inflation, the Sunday Telegraph reported.

The proposals are at "drawing board stage," the Telegraph said, citing a person affiliated with Downing Street it did not identify. Participation by retailers would be voluntary, the Telegraph reported.

The proposal comes amid growing government concerns over pressure on household finances from inflation and rising borrowing costs. Sunak has made reducing consumer prices a centerpiece of government policy and has pledged to get inflation to around 5% by the end of the year. The inflation rate was at 8.7% in April, down from more than 10% at the start of the year.


If introduced, a cap would be the biggest attempt in managing supermarket prices since controls established by conservative Prime Minister Edward Heath in the 1970s.

The proposal is reminiscent of an agreement made in France, where the country's retailers had agreed to charge the "lowest possible amount" for some essential food products.