Snapshot of _Supermarket price rises hit new high in May_ :
An archived version can be found [here.](https://archive.is/?run=1&url=https://www.bbc.co.uk/news/business-65747137)
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In the article: "But the BRC has dismissed caps, stating the government should focus on cutting *red tape* so resources could be "directed to keeping prices as low as possible", as opposed to "recreating 1970s-style price controls"."
Does anyone know what red tape they can be referring to? 'Sell-by' regulations?
> Does anyone know what red tape they can be referring to? ‘Sell-by’ regulations?
The government has been working hard to put up trade barriers between the UK and it’s largest trading partners. Maybe they mean that.
The UK isn’t currently checking imports. It has repeatedly been postponed.
But retailers are concerned that when (if) they do start, it’ll increase costs.
In every instance price controls have been used, other than when they've been non-binding (i.e. a price floor far below price or a ceiling far above it), they've caused shortages.
> "The biggest risk comes from policies such as the incoming border checks and reforms to packaging recycling fees."
(From Reuters)
Red tape is the editorialisation the BBC add because they don’t think you will care about the detail.
It must be the red tape around the problems the BBC itemises, i.e high gas prices, the war in Ukraine and the cold snap in Spain and Morocco.
You're not going to get a government funded broadcaster mentioning the 'B' word.
>It must be the red tape around the problems the BBC itemises, i.e high gas prices, the war in Ukraine and the cold snap in Spain and Morocco.
But that is not red tape. That is just straightforward problems. Red tape refers to unnecccesary bureaucracy.
You do realise that the vast majority of these forms are automated, right?
It's not some poor old diddy scribbling away in pencil in some office.
Edit: Because there are some contrary opinions below, I'll add the proviso: in organisations with their shit together.
I promise you they're not. I work in healthcare logistics and the amount of import forms I see the tem have to manually fill out, check or amned for orders is ridiculous.
Agreed. I've literally watched one of my colleagues spend 8 hours amending import and customs forms that were fucked up. It's a horrendously manual process.
And the literal “paperwork” is obscene in this industry even with relatively easy goods.
It honestly breaks my heart from both a time perspective and that of the climate, it’s ridiculous.
It is indeed possible for products to increase in price, but not all products increase in price. Nowadays, only the rich can afford to buy expensive foods and things.
It’s their job to make as much money as possible. I’m prepared to be downvoted to fuck for this but the price of food is something the free market will regulate on its own. When people notice that milk prices are dropping they will gravitate towards the shops with the lower values, the other guys will have to undercut. And they absolutely will because the wholesale price is down and there’s margin to spare. In these situations taking market share by lowering prices actually increases profit so it is the greedy thing to do. There’s not enough coordination to keep prices high. This will take time though. Markets don’t shift over night
Nobody has the time to select every individual item on their shopping list granularly by retailer, or base the shop they go to on who has the lowest price milk. Are you expecting people to sweep around every supermarket and check every price before doing their shop? The suggestion is ludicrious.
If you asked person by person, no you wouldn’t notice anything significant. But look at the mass action of nearly 70 million people across the big supermarkets and I guarantee you get statistical shifts based on price. The supermarkets monitor this, and they will move if they think they can make a profit
You honestly saying you think this country has a supermarket monopoly? Asda Morrisons Sainsbury’s Waitrose Tesco Aldi Iceland coop b&m. All competing. We probably have more supermarket competition than any country in the world
True. But I guess when wholesale prices go up the economic loss to business is immediate. While when they go down the economic loss won’t hit until competitors move. So you get a Mexican stand-off. They do eventually move though
The *rate of change* is a new high, not just the price. Hence the *rise* hits a new high in the headline.
But rather than read the article or headline you wanted to sneer based on your assumption that you're smarter than others.
The Bank of England needs to get serious and start raising interest rates properly. A quarter of a percent every 6 weeks just isn't getting on top of things.
Problem is the rising interest rates look to drive inflation at the moment as it's putting up costs for businesses.
Normally raising interest rates cuts inflation because it gets rid of disposable income, unfortunately this time raising interests rates are just squeezing everyone and companies have seen an excuse to increase prices beyond inflation and costs- see heinz for example.
No. What I'm suggesting is rising interest rates are increasing business costs which are being exaggerated and passed on to consumers with the excuse of inflation. CPI and food costs are still growing driving inflation. Increased interest rates that the businesses pay are part of that. This isn't traditional inflation caused by too much money, this is inflation caused by corporate greed and dirve for profits. Inflation usually represents too much money in a system, the problem is where that too much money usually comes from, you and I, don't currently have enough money to keep up with inflation.
It gets worse when you look at how many of these companies have actually cut dividend pay outs- if that money is not being paid out, or reinvested in infrastructure and development as happened historically where and why is it being stockpiled?
When it comes to interest rates. I understand why BoE have done it: they have a legal duty to control inflation and the only tool they have is interest rates. Even though that is not the cause of current inflation and in reality only hits us, not my water company, not my utility, not my bank... They just all hit me for more.
You are dumb if you think rising interest rates raises inflation. Thats some dumb Erdoğan bullshit like saying lowering them tames inflation. Its not how that works at all
That's not what I'm saying.
What I'm says is that usually raising interest rates controls inflation, we all know that. But this time it isn't working because we don't have disposable income. The money in the system needs controlling through interest rates, but the issue at the moment is that the money is not as it was historically spread through the system but is instead higher in the system where that money is wanted: utilities, banks etc.
Rising interest rates are increasing business costs which are being exaggerated and passed on to consumers with the excuse of inflation. CPI and food costs are still growing driving inflation. Increased interest rates that the businesses pay are part of that. This isn't traditional inflation caused by too much money, this is inflation caused by corporate greed and drive for profits. Inflation usually represents too much money in a system, the problem is where that too much money usually comes from, you and I, don't currently have enough money to keep up with inflation.
It gets worse when you look at how many of these companies have actually cut dividend pay outs- if that money is not being paid out, or reinvested in infrastructure and development as happened historically where and why is it being stockpiled?
When it comes to interest rates. I understand why BoE have done it: they have a legal duty to control inflation and the only tool they have is interest rates. Even though that is not the cause of current inflation and in reality only hits us, not my water company, not my utility, not my bank... They just all hit me for more.
I emigrated four years ago. So how are things going? You still into that Tory thing? How did the oven ready deal work out?
Only messing! I actually visited last summer with my US family. My partner was thrilled about how cheap everything was with the exchange rate. TBH, living in the US is a little boring compared to the UK. No decent pubs. No fish and chips. No channel 4. No banter. But when UK recruiters reach out, the wages are so wretched, I can’t afford to take any offers seriously.
Snapshot of _Supermarket price rises hit new high in May_ : An archived version can be found [here.](https://archive.is/?run=1&url=https://www.bbc.co.uk/news/business-65747137) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/ukpolitics) if you have any questions or concerns.*
In the article: "But the BRC has dismissed caps, stating the government should focus on cutting *red tape* so resources could be "directed to keeping prices as low as possible", as opposed to "recreating 1970s-style price controls"." Does anyone know what red tape they can be referring to? 'Sell-by' regulations?
> Does anyone know what red tape they can be referring to? ‘Sell-by’ regulations? The government has been working hard to put up trade barriers between the UK and it’s largest trading partners. Maybe they mean that.
The UK isn’t currently checking imports. It has repeatedly been postponed. But retailers are concerned that when (if) they do start, it’ll increase costs.
Also anyone importing still has to try and fill in the forms correctly, deal with the delays on the way back trucking wise so it all costs more etc.
Im in Greece atm and prices are t that much lower than at home except for local produce. We need price controls.
In every instance price controls have been used, other than when they've been non-binding (i.e. a price floor far below price or a ceiling far above it), they've caused shortages.
Customs forms importing I imagine...
> "The biggest risk comes from policies such as the incoming border checks and reforms to packaging recycling fees." (From Reuters) Red tape is the editorialisation the BBC add because they don’t think you will care about the detail.
More like they don't want to criticise Brexit.
It must be the red tape around the problems the BBC itemises, i.e high gas prices, the war in Ukraine and the cold snap in Spain and Morocco. You're not going to get a government funded broadcaster mentioning the 'B' word.
>It must be the red tape around the problems the BBC itemises, i.e high gas prices, the war in Ukraine and the cold snap in Spain and Morocco. But that is not red tape. That is just straightforward problems. Red tape refers to unnecccesary bureaucracy.
The red tape is Brexit and the forms importers must fill out each and every time. Something they didn't need to do pre-Brexit.
You do realise that the vast majority of these forms are automated, right? It's not some poor old diddy scribbling away in pencil in some office. Edit: Because there are some contrary opinions below, I'll add the proviso: in organisations with their shit together.
I promise you they're not. I work in healthcare logistics and the amount of import forms I see the tem have to manually fill out, check or amned for orders is ridiculous.
Yeah this guy doesn’t work in logistics.
Agreed. I've literally watched one of my colleagues spend 8 hours amending import and customs forms that were fucked up. It's a horrendously manual process.
And the literal “paperwork” is obscene in this industry even with relatively easy goods. It honestly breaks my heart from both a time perspective and that of the climate, it’s ridiculous.
Yep. And some of the things I've seen that have had to be amended are ridiculous.
This is beyond ridiculous. Food inflation is felt all across the continent, the B word has little to do with it.
Yes there’s lots of things involved here but it doesn’t have nothing to with it and it’s certainly not helping.
The B word
>Does anyone know what red tape they can be referring to? 'Sell-by' regulations? Minimum wage laws, worker rights and quality standards
Most supermarkets pay above minimum wage.
But their suppliers probably don't...
I think this is a bad news for me..especially for everyone..Gosh! Is that true?
It is indeed possible for products to increase in price, but not all products increase in price. Nowadays, only the rich can afford to buy expensive foods and things.
Milk prices have dropped by 5p the producers prices have dropped by 10-15p. "we're definitely not profiteering"
Learned everything they know from beer and fuel retailers.
Milk margins are brutal - often a loss leader and/or unsustainably low. It is not surprising that they don’t track pound for pound.
It’s their job to make as much money as possible. I’m prepared to be downvoted to fuck for this but the price of food is something the free market will regulate on its own. When people notice that milk prices are dropping they will gravitate towards the shops with the lower values, the other guys will have to undercut. And they absolutely will because the wholesale price is down and there’s margin to spare. In these situations taking market share by lowering prices actually increases profit so it is the greedy thing to do. There’s not enough coordination to keep prices high. This will take time though. Markets don’t shift over night
Nobody has the time to select every individual item on their shopping list granularly by retailer, or base the shop they go to on who has the lowest price milk. Are you expecting people to sweep around every supermarket and check every price before doing their shop? The suggestion is ludicrious.
If you asked person by person, no you wouldn’t notice anything significant. But look at the mass action of nearly 70 million people across the big supermarkets and I guarantee you get statistical shifts based on price. The supermarkets monitor this, and they will move if they think they can make a profit
Are they free markets when they have a monopoly?
You honestly saying you think this country has a supermarket monopoly? Asda Morrisons Sainsbury’s Waitrose Tesco Aldi Iceland coop b&m. All competing. We probably have more supermarket competition than any country in the world
Well they have a monopoly in the dairy industry. It's hard to get a contract with a different buyer and they dictate the price.
> This will take time though. Markets don’t shift over night That’s not quite right, if wholesale prices go up then prices will shift overnight.
True. But I guess when wholesale prices go up the economic loss to business is immediate. While when they go down the economic loss won’t hit until competitors move. So you get a Mexican stand-off. They do eventually move though
Economic literacy is not tolerated here buddy. We want to be angry at corporations ooga booga.
We can just replace the month and republish the article as super markets are always hitting new highs since that's how inflation works
The *rate of change* is a new high, not just the price. Hence the *rise* hits a new high in the headline. But rather than read the article or headline you wanted to sneer based on your assumption that you're smarter than others.
I bet your fun at parties
The Bank of England needs to get serious and start raising interest rates properly. A quarter of a percent every 6 weeks just isn't getting on top of things.
Problem is the rising interest rates look to drive inflation at the moment as it's putting up costs for businesses. Normally raising interest rates cuts inflation because it gets rid of disposable income, unfortunately this time raising interests rates are just squeezing everyone and companies have seen an excuse to increase prices beyond inflation and costs- see heinz for example.
Are you seriously suggesting that inflation wouldn't be so bad if the Bank of England had kept interest rates lower?
No. What I'm suggesting is rising interest rates are increasing business costs which are being exaggerated and passed on to consumers with the excuse of inflation. CPI and food costs are still growing driving inflation. Increased interest rates that the businesses pay are part of that. This isn't traditional inflation caused by too much money, this is inflation caused by corporate greed and dirve for profits. Inflation usually represents too much money in a system, the problem is where that too much money usually comes from, you and I, don't currently have enough money to keep up with inflation. It gets worse when you look at how many of these companies have actually cut dividend pay outs- if that money is not being paid out, or reinvested in infrastructure and development as happened historically where and why is it being stockpiled? When it comes to interest rates. I understand why BoE have done it: they have a legal duty to control inflation and the only tool they have is interest rates. Even though that is not the cause of current inflation and in reality only hits us, not my water company, not my utility, not my bank... They just all hit me for more.
Real crank hours
You are dumb if you think rising interest rates raises inflation. Thats some dumb Erdoğan bullshit like saying lowering them tames inflation. Its not how that works at all
That's not what I'm saying. What I'm says is that usually raising interest rates controls inflation, we all know that. But this time it isn't working because we don't have disposable income. The money in the system needs controlling through interest rates, but the issue at the moment is that the money is not as it was historically spread through the system but is instead higher in the system where that money is wanted: utilities, banks etc. Rising interest rates are increasing business costs which are being exaggerated and passed on to consumers with the excuse of inflation. CPI and food costs are still growing driving inflation. Increased interest rates that the businesses pay are part of that. This isn't traditional inflation caused by too much money, this is inflation caused by corporate greed and drive for profits. Inflation usually represents too much money in a system, the problem is where that too much money usually comes from, you and I, don't currently have enough money to keep up with inflation. It gets worse when you look at how many of these companies have actually cut dividend pay outs- if that money is not being paid out, or reinvested in infrastructure and development as happened historically where and why is it being stockpiled? When it comes to interest rates. I understand why BoE have done it: they have a legal duty to control inflation and the only tool they have is interest rates. Even though that is not the cause of current inflation and in reality only hits us, not my water company, not my utility, not my bank... They just all hit me for more.
I emigrated four years ago. So how are things going? You still into that Tory thing? How did the oven ready deal work out? Only messing! I actually visited last summer with my US family. My partner was thrilled about how cheap everything was with the exchange rate. TBH, living in the US is a little boring compared to the UK. No decent pubs. No fish and chips. No channel 4. No banter. But when UK recruiters reach out, the wages are so wretched, I can’t afford to take any offers seriously.
Food production is oil-dependent. We're running into oil scarcity. Stock up with deals, grow some food.
Sucks to be them, I've been abroad all month. Glad I will have missed this by the time I get back in June.