Food Price Caps a Gimmick
1 June 2023
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Energy and Environment
Energy and Environment
Andy Mayer quoted in The Express
1 June 2023
Housing and Planning
Julian Jessop quoted in The Express, The Financial Times, and The Mail
IEA Economics Fellow Julian Jessop has been quoted in the Daily Express responding to Rishi Sunak’s proposed France-esque voluntary food price caps.
Julian said:
“Caps on food prices are at best a pointless gimmick and, at worst, harmful to the very people they are supposed to help.
“Despite hype about ‘greedflation’ driving up food costs, UK supermarkets work on tiny profit margins. While they might be willing to regard some basic foods as ‘loss leaders’ for positive publicity, they may also compensate for price controls by reducing quantity or quality and by raising prices for ‘uncapped’ goods.
“It is not even certain that the prices of capped goods would end up lower than if there were no cap. Supermarkets may simply price to the cap, and not cut prices further even if falling costs allowed it.”
Read the full article here.
Julian was also quoted in the Financial Times and the Daily Mail.
Julian said:
“Caps on food prices are at best a pointless gimmick and, at worst, harmful to the very people they are supposed to help.
“Despite hype about ‘greedflation’ driving up food costs, UK supermarkets work on tiny profit margins. While they might be willing to regard some basic foods as ‘loss leaders’ for positive publicity, they may also compensate for price controls by reducing quantity or quality and by raising prices for ‘uncapped’ goods.
“It is not even certain that the prices of capped goods would end up lower than if there were no cap. Supermarkets may simply price to the cap, and not cut prices further even if falling costs allowed it.”
Read the full article here.
Julian was also quoted in the Financial Times and the Daily Mail.
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