The recent increase in grocery prices has prompted the CMA to investigate the grocery sector in the UK to ascertain whether weak or ineffective competition between retailers has contributed to those increases.
Although the CMA initially found that recent high price inflation for groceries "does not appear to have been driven at an aggregate level by weak or ineffective competition between retailers", it has also confirmed that it intends to further investigate the drivers of prices; for instance, by considering whether there is a lack of competition in other parts of the supply chain. The latest update about the investigation was published on the CMA's website in July 2023.
Within the article, Sam covers the following:
The lag between consumer price inflation and food inflation
Consumer response to food price increases
How retailers set prices
Retailers’ relationships with their suppliers
Where does the CMA go from here?
Read the full article on the Food Manufacture website to learn more.