Unilever, Marmite’s maker, and Sainsbury’s, a grocery chain, deny price hike reports.
It comes after the Office for National Statistics (ONS) informed that supermarkets have not yet reflected global food price declines.
Unilever stated that it was not “profiting in any way” from price increases.
Sainsbury’s stated that it had invested millions in pricing reductions and was “determined to combat inflation.”
The cost of living has increased recently, with food prices in March being nearly a fifth higher than a year earlier – the greatest increase since 1977.
Wholesale food costs are falling, with the World Bank projecting an 8% drop by year’s end.
According to supermarkets, it takes time for such drops to reach store shelves. In March, however, the Unite union accused certain supermarkets of “fueling inflation through excessive profiteering.”
Tesco chairman John Allan said it was “entirely possible” suppliers were utilising rising inflation to hike prices unnecessarily.
On Thursday, Unilever CEO Alan Jope told reporters that the company was passing on three-quarters of its rising costs.
Mr. Jope stated, “We are acutely aware that consumers are suffering. That’s why we’re not passing through the entire price hikes and asking shareholders to help.”
The consumer products giant, which makes Ben & Jerry’s ice cream, saw revenues rise 10.5% in the first quarter.
The better-than-anticipated figure was prompted by the company’s 10.7% price increase during the period.
Separately, the CEO of Sainsbury’s stated that the company would pass on any price reductions as soon as possible and was “absolutely committed to fighting inflation for our customers.”
Simon Roberts predicts that rising energy and labour costs would prevent broad price cuts.
It came as the second-largest grocery chain in the United Kingdom reported a better-than-expected 5% decline in underlying profits to £690 million and a nearly 6% increase in sales in the year to March.
The Ukraine war has raised food prices worldwide, but Brexit red tape and labour shortages have plagued the UK.
Due to rising energy expenses, UK farmers produced less and foreign weather caused vegetable shortages this year.
Supermarkets dispute that they underpay UK farmers.
The British Retail Consortium, which represents grocers, stated last week that it takes three to nine months for price reductions to be reflected in stores.
“As food production costs reached their peak in October 2022, we anticipate that consumer food prices will begin to decline in the coming months,” the report stated.
