UK supermarket profitability under close surveillance

The UK Competition and Markets Authority (CMA) announced that it is closely monitoring supermarket profits as part of the fight against food inflation, and will examine product-based inflation sub-indices and their relationship with trends in input costs. David Stewart, Executive Director of Markets and Mergers at the UK Competition and Markets Authority (CMA), sent a letter to supermarkets regarding the plan they will implement to ensure how competition rules work in supermarkets as the cost of living crisis grows. Accordingly, the CMA did not encounter any problems that violated competition in the retail sector within the scope of the plan it launched on May 15. However, due to concerns created by high food prices, the CMA announced that it is closely monitoring supermarket profits in order to ensure that consumers can spend safely and to prevent food inflation. The competition authority announced that it will also examine product-based inflation sub-indices and their relationship with trends in input costs. The report, which includes product and unit-based costs, will be released The CMA will be in contact with supermarkets starting today and will complete its investigations by the end of June. The agency will release a report at the end of July that includes product and unit costs to help consumers learn about prices. Food inflation in the UK reached its second highest level in 45 years in April at 19.1 percent. Food inflation broke a record in March at 19.2 percent. Last week, the British Telegraph reported that UK Prime Minister Rishi Sunak would ask supermarkets to impose price limits on basic food products such as milk and bread, and that a plan was being worked on.