Lichfield’s MP says “robust” action is needed to ensure that food prices will drop quickly when factors that have caused a spike in costs ease.
Michael Fabricant made his comments following a debate on food pricing in the House of Commons.
The Conservative MP asked Food Minister Mark Spencer whether supermarkets were taking advantage of food inflation to create excess profits.
“What recent discussions has the minister had with supermarkets on ensuring that reductions in wholesale food costs are reflected in food prices?”
Michael Fabricant
Mr Spencer said that his department met regularly with retailers to discuss issues such as food inflation.
“The Chancellor and the Secretary of State met with a number of food and drink manufacturers this week and will continue this engagement to ensure that consumers have access to a range of affordable food in recognition of the pressures people are feeling at home.”
Mark Spencer
Mr Fabricant then asked what controls were in place to ensure consumers were not being taken advantage of.
“My constituents in Lichfield and Burntwood, and indeed the rest of the country, are enduring high food inflation, as indeed they are in the rest of Europe.
“What controls have we got to ensure that supermarkets don’t take unfair advantage and excess profits from wholesale prices?”
Michael Fabricant
Mr Spencer replied:
“Retailers work to ensure strong competitive pressure remains in the marketplace. However, the Competition and Markets Authority announced last week that they’re looking into the grocery sector to see whether any failure in competition is contributing to prices being higher than they would be normally.
“They will will focus on areas where people are experiencing greater cost of living pressures but my Hon Friend will also be aware that the Groceries Code Adjudicator will remain separate from the CMA, and can take on investigations should they choose to do so.”
Mark Spencer
Speaking after the debate, Mr Fabricant said people needed assurances that food would not follow the path of fuel when it came to costs.
“When wholesale food prices begin to fall again – and they will when the Ukraine war has ended – it is important that supermarkets rapidly reflect the downward change in wholesale food prices and do not behave like some fuel retailers who are quick to raise prices, but slow to reduce them when world oil prices fall.
“The Competition and Markets Authority must be robust in ensuring this.”
Michael Fabricant
