LONDON – British Prime Minister Rishi Sunak’s government is seeking an agreement with supermarkets to introduce price caps on basic food items such as bread and milk in order to tackle inflation, reported The Sunday Telegraph. 

The proposals are at “drawing board stage”, the Telegraph said, citing a person affiliated with Downing Street it did not identify.

Participation by retailers would be voluntary, the Telegraph reported.

The proposal comes amid growing government concerns over pressure on household finances from inflation and rising borrowing costs.

Mr Sunak has made reducing consumer prices a centrepiece of government policy.

He has pledged to get inflation to around 5 per cent by the end of 2023.

The inflation rate was 8.7 per cent in April, down from more than 10 per cent at the start of 2023.

If introduced, a cap would be the biggest attempt in managing supermarket prices since controls established by conservative Prime Minister Edward Heath in the 1970s. 

The proposal is reminiscent of an agreement made in France, where the country’s retailers had agreed to charge the “lowest possible amount” for some essential food products.

Earlier in May, French Finance Minister Bruno Le Maire announced an extension of the initiative. BLOOMBERG