Price cap may be introduced on foods contributing to 'varied, balanced' diet

Politicians have been supporting the idea as inflation pressures continue across the country.

The UK Treasury this week attempted to push a move to introduce voluntary price limits on certain groceries, according to The Journal.

Items such as bread, milk, and eggs could be capped in the move.

Sinn Féin’s Finance Spokesperson, Pearse Doherty, has said the party would like to establish a “grocery price-caps commission” to explore the initiative more.

READ NEXT: Tributes pour in for 'beloved' young man who died after being attacked by teenagers

“This commission would examine what groceries could be subject to maximum pricing and the forms that this may take,” he said.

Foods contributing to a “varied, balanced and nutritious diet” would be looked at, along with profit margins, price increases in the previous 36 months, and the impact of high grocery prices.

“It would examine the range of actions taken by governments in other European countries in order to identify the action, or actions, that would work best in Ireland. It should report in no more than six weeks,” Deputy Doherty added.

He used Greece as an example, after the country struck a deal with supermarkets in 2022 to sell staple foods at fixed prices.

The notion of introducing a price cap has received some criticism, with the director of Retail Ireland saying it can cause harm by distorting supply chains and reducing quality and choice.

“In its independent analysis of the grocery sector, the CCPC examined international attempts at retail price controls and explicitly concluded that it had ‘not seen any evidence that price interventions have benefitted consumers’,” Arnold Dillon said.

“Irish grocery retailers operate on incredibly tight margins in an intensely competitive market. Policy in this critical sector must be strictly evidence-based,” he added.