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The British Retail Consortium (BRC) has reported that supermarket bosses had a “constructive” meeting with Rachel Reeves yesterday over the extent of possible price rises and household essential shortages as the Middle East conflict causes fuel, energy and fertiliser prices to leap.
A source within the Treasury had told The Guardian that the chancellor’s discussion with the bosses of Sainsbury’s, Tesco and Morrisons would seek to identify possible supply chain issues stemming from the conflict and to determine how these issues might impact consumer prices in the near future.
An earlier attempt to hold talks had failed due to supermarket chiefs’ perceived accusations by the government of “profiteering”, according to The Times. Supermarket executives reportedly interpreted the original summons’ tone and short notice as foreshadowing a public scolding, with only Morrisons head Rami Baitiéh confirming attendance.
UK farmers and producers are warning that, without government help, prices will increase and certain products will see shortages.
British growers of tomatoes, cucumbers, peppers and aubergines said some could have no choice but to dig up already-planted crops, culminating in supermarket shelf gaps.
This news follows new data by the British Retail Consortium suggesting shop price inflation rose to 1.2% in March, 1.1% higher than the month before.
Commenting on supermarket executives’ meeting with the chancellor, BRC chief Helen Dickinson said: “Retailers had a constructive meeting with the chancellor. Supermarkets are doing everything they can to keep food prices affordable and maintain the ongoing resilience of their supply chains.
“While the conflict in the Middle East means some inflation is inevitable, there are domestic policy levers that government can pull in order to mitigate some of the inflationary pressures. Industry is committed to working with government to consider these further and on ways it can continue to support British households.”
