UK discusses voluntary food price caps with supermarkets

The UK government is in discussions with major supermarkets over a voluntary plan to cap prices on essential food items in exchange for regulatory relief, according to multiple reports. The proposal, which has drawn sharp criticism from the retail industry, aims to address ongoing cost-of-living pressures as officials express concern over the economic impact of conflict in the Middle East.

Under the reported plan, supermarkets would voluntarily limit price increases on staples such as bread, milk, and eggs. In return, the Treasury would offer incentives, including easing packaging regulations and potentially delaying changes to rules governing healthy foods. Officials have also reportedly sought guarantees that British farmers would not lose income as a result of any caps. The government has emphasized the voluntary nature of the scheme, distinguishing it from mandatory price controls.

The proposal follows a rise in UK food inflation, which reached 3.7 percent in April. Senior government figures have recently warned of broader risks to global food supplies, with the Foreign Secretary citing the potential for a crisis due to disruptions in the Strait of Hormuz.