Food Price Caps a Gimmick
Andy Mayer writes in CapX
Andy Mayer quoted in The Express
Julian Jessop quoted in The Express, The Financial Times, and The Mail
“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.