Food: Prices
The question
To ask the Chancellor of the Exchequer, what steps the Government is taking to reduce inflation in the prices of food.
Answered by Lucy Rigby
The Government has announced a Food Inflation Gateway to assess and monitor regulation that could add to food prices. This will improve coordination and give food businesses a clear line of sight on upcoming regulatory changes, helping to keep costs down
The Government is also negotiating an agri-food agreement with the EU to reduce trade frictions, which is expected to save businesses up to £200 per fresh food shipment, helping to limit cost pressures across supply chains.
In addition, supermarkets will see a reduction in their total business rates bills in 2026/27 compared with 2025/26, and this will be kept under review at the next revaluation. The Office for Budget Responsibility (OBR) does not expect changes in business rates to have a material impact on food inflation.
Overall, the OBR’s forecast shows government policy will reduce CPI inflation by 0.4 percentage points in 2026/27. This is the biggest near-term reduction in inflation due to government policy ever forecast by the OBR at a single fiscal event, outside of a crisis.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →