We hear everywhere that the cost of raw materials accounts for the most part of rises in food prices. But a new report shows that profiteering supermarkets are also responsible.
A report by UBS bank says that supermarkets are raising prices faster than the rate at which commodities are rising. The price of raw materials like sugar, eggs and meat accounts for a rise of 3% - 3.5%. But some supermarkets have increased prices by much higher rates - 6% or 6.5%.
Instead of raw material price rises as something they need to protec t customers against, they are using them to raise prices in order to make profit.
The report showed that the UK suffers more than any other country in the OECD from these price rises. Here, food prices rise around 4.9% a year here, compared a europe-wide average of 1.8% and an increase in the US of just 1.5%.
While supermarkets maintain that commodity rises explain the differences, as well as pointing to a weak pound making imports more expensive, ordinary consumers are feeling ripped off as the price of their weekly shop rockets. What’s your opinion?