Chancellor to meet grocers to discuss war cost-of-living impact

Representatives from grocers including Morrisons, Sainsbury’s and Tesco are expected to attend the meeting, where concerns such as the likely effect of the conflict on food prices will be discussed.

It follows the cancellation of discussions scheduled for last week, which several grocers declined to attend because they believed they would face unfair accusations of profiteering.

Today’s talks come amid fears that the war between the US and Israel against Iran, which has sent oil prices soaring, will force increases in prices across a range of industries and goods, including food, as the government battles to bring down inflation and the cost of living.

The issue has already prompted skirmishes. Last week, Asda executive chair Allan Leighton criticised the government over suggestions that forecourt prices were rising unduly. The grocer is one of the biggest petrol retailers.

He said: “This whole thing is actually a disgrace. That they try to point the finger at petrol retailers for gouging. It’s typical camouflage. They point the finger at somebody else; hopefully then nobody will work out that they are the problem.”

Any effect of the war on food prices is unlikely to be felt until later in the year. 

Since the cancellation of last week’s meeting, the government has sought to reassure retailers that it wanted to engage constructively on the implications of the war.