A report has pointed to greedflation, which has stemmed from some companies, including food major Kraft Heinz, of “amplifying inflation” through excessive prices.
UK-based think tanks IPPR and Common Wealth suggested “dominant companies” are making “excess profits” by hiking prices by more than might be necessary to combat higher input-cost inflation, massively increasing their profit margins, reports The Guardian.
Aside from Kraft Heinz, the think tanks mentioned US agri-food giants Archer Daniels Midland (ADM) and Bunge, as well as a host of other massive companies.
The report said this has damaged the economy saying. “Global GDP could be 8% higher than it is now had market power not risen. Labour income is likely significantly lower, and economic dynamism is weaker – with poorer choice, worse product quality and fewer economic opportunities – than in a counterfactual world where big corporations were less dominant.”
It comes as shoppers struggling with the cost of living crisis are apparently turning to cheaper comfort foods including oven chips, macaroni cheese and battered fish
Now peas on toast is replacing smashed avocado, says Waitrose of all people.
People are becoming “less adventurous” as tighter food budgets prompt a return to old favourites, the posh supermarket chain have said
A third of UK adults have regularly eaten classic dishes such as shepherd’s pie and macaroni cheese, the supermarket’s tenth annual food and drink survey found.
“This year, food inflation has changed not only how people shop, but also how they cook and eat,” Waitrose executive director James Bailey said.
“Price-conscious customers have been searching for the best value, switching more to own-label, buying bigger pack sizes, and looking to our promotions to cushion their bills.