Healey’s profiteering warning on food and fuel risks row with retailers

📰 source: theguardian_business · 💼 business

uk chancellor john healey warned retailers the government is watching for profiteering at the pump or the till as the iran war pushes prices up. writing in the sunday telegraph, he said he had seen no significant evidence of price gouging yet but ministers were 'watching closely'. the warning sets up a fresh row with supermarkets, which have already clashed with the government over a proposed cap on food prices earlier this year. stuart machin, m&s chief executive, called that plan 'completely preposterous'.

the bank of england kept interest rates on hold last week, saying a further escalation in the iran war could push inflation above 4% next year. healey said the conflict threatens economic security and hits family finances, while many businesses face higher costs. the british retail consortium, representing tesco, sainsbury's and asda, said the chancellor should focus on the impact of tax rises like employers' national insurance and business rates. andrew opie of the brc said supermarkets operate in a highly competitive environment and the cma has found competition, not government action, keeps food prices low.

why it matters: healey's warning raises odds of government intervention in food and fuel costs, a direct challenge to retailers amid rising inflation.

source: theguardian_business
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