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Price caps on groceries are not the answer to the UK's inflation problem

By Christoph Siemroth, Associate Professor (Senior Lecturer) in Economics, University of Essex

Prime Minister Rishi Sunak is proposing a form of price caps on basic food items like milk and bread to slow their price increases. This is likely to set maximum prices which sellers are not allowed to exceed, though it appears it would be voluntary.

Price caps are loved by the public: 71% of UK voters supported them in…

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