The UK’s Competition & Markets Authority (CMA) has found that some suppliers have been raising their prices by more than their costs went up over the past two years. This move has contributed towards pushing up food prices, according to the watchdog’s analysis of pricing in ten categories, including items like baby formula, milk and baked beans. Additionally, the CMA attributed a large part of high food price inflation to rising energy and fertilizer costs, which has impacted both consumers and suppliers.
Approximately three-quarters of branded suppliers have been making higher profits, despite the general feeling that consumers are increasingly turning to own-label products. Own-label formulas are not always available in some cases, thus putting new parents at a disadvantage. The CMA stresses that a family could save up to £500 a year on baby formula by simply shopping around. Sarah Cardell, the Chief Executive of the CMA, said that the pace of food price rises “has put huge strain on household budgets.”
The watchdog plans to delve deeper into the baby formula market as part of its analysis, where the market is dominated by two major players. It is looking at supermarket loyalty card schemes too. The CMA’s findings underscore a larger concern about households grappling with the effects of soaring inflation circulating around the country, particularly for low-income people and those with vulnerable jobs
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