New polling indicates that a majority of British citizens believe supermarkets are profiteering from increasing food prices. The City AM/Freshwater Strategy poll found that 70% of UK voters think grocers are making "excessive" profits from food inflation.
This perception persists despite Chancellor John Healey recently acknowledging a lack of significant evidence for such practices. Healey had previously warned retailers against unnecessary price increases, stating that regulators have powers to act if price gouging occurs.
The British Retail Consortium (BRC), representing major UK retailers, has countered the suggestion of profiteering, with its corporate affairs director, Jim Bligh, stating that retail is one of the UK's lowest margin industries. The BRC claims to be working to keep prices down amid intense competition.
Voters estimated that supermarkets make 32p profit for every pound spent, which is more than ten times the actual figure of 3p per pound. When informed of the actual profit margin, the belief in price gouging fell to 32%.
The findings emerge as food inflation has slowed in recent months, reaching 1.7% in June. However, around 70% of voters still believe supermarket prices are rising, albeit at a slower rate.