{"id":44152,"date":"2023-11-29T08:19:01","date_gmt":"2023-11-29T08:19:01","guid":{"rendered":"https:\/\/histarmar.net\/?p=44152"},"modified":"2023-11-29T08:19:01","modified_gmt":"2023-11-29T08:19:01","slug":"food-brands-accused-of-pushing-up-prices-on-your-shop-faster-than-cost-rises","status":"publish","type":"post","link":"https:\/\/histarmar.net\/world-news\/food-brands-accused-of-pushing-up-prices-on-your-shop-faster-than-cost-rises\/","title":{"rendered":"Food brands accused of pushing up prices on your shop faster than cost rises"},"content":{"rendered":"

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Some branded food suppliers have pushed up prices faster than their costs have risen, according to the competition watchdog.<\/p>\n

The Competition and Markets Authority found that most inflation had been caused by suppliers passing cost increases onto customers.<\/p>\n

However, it said around three-quarters of branded suppliers of infant formula, baked beans, mayonnaise and pet food have increased their profitability and contributed to food prices increasing.<\/p>\n

It should be noted that shoppers can find cheaper alternatives.<\/p>\n

Brands also told the CMA that when their costs started to fall they would offer promotions to customers, rather than cut the standard costs of their products.<\/p>\n

READ MORE: <\/strong> ‘McDonald’s has got so expensive – it is not convenient or affordable anymore’<\/strong><\/p>\n

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Food price inflation continues to be at historically high levels, despite falling to 10.1 percent in October 2023.<\/p>\n

Across the food and groceries sector, the CMA found that high inflation has been driven largely by rising input costs, particularly for energy and key agricultural inputs like fertiliser.<\/p>\n

Many consumers have switched away from brands towards own-label alternatives, or reduced their consumption, leading to a decline in brands\u2019 market shares and profits.<\/p>\n

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This switching is positive for competition and allows those able to switch, to lessen the impact of high food price inflation.<\/p>\n

Overall profit margins have fallen across most branded manufacturers since 2021, mainly because of a fall in sale volumes due to consumers switching to cheaper alternatives.<\/p>\n

With the rise in some supermarkets making cheaper prices only available for loyalty card members, the CMA plans to begin a review of the use of loyalty scheme pricing by supermarkets in early 2024.<\/p>\n

The CMA\u2019s work will consider how the growth in loyalty scheme pricing is affecting consumers and competition in the grocery sector.<\/p>\n