Asda's chairman has stated supermarkets are owed a "debt of gratitude" as he dismissed speak of capping costs as "rather backward looking".

Stuart Rose's feedback come after reviews that supermarkets will likely be inspired to introduce voluntary worth caps on necessities reminiscent of milk and bread to assist prospects address the price of residing.

Lord Rose instructed Sky's Ian King Live programme: "Not just Asda but all retailers are very efficient - we are a very efficient industry.

"In actual phrases, the price of meals, the price of clothes, the price of electronics has come down over the past 20, 30, 40 years, largely because of the effectivity of outlets.

"Governments of any complexion owe us a debt of gratitude, and this recent speculation over the last couple of days about fixing prices is, frankly, rather backward looking."

Food worth inflation within the UK was 15.4% within the yr to May, in line with figures from the British Retail Consortium, a slower price than the file seen in April, however nonetheless a significant component within the cussed price of general inflation.

But the massive gamers have seen their income fall - in April Tesco stated its adjusted working revenue for the yr was £2.6bn (down 6.9% on the earlier yr), whereas Sainsbury's stated its underlying revenue earlier than tax was down from £730m to £690m.

Asda is just not a publicly-listed firm, so its income usually are not reported, however Lord Rose grouped it with its opponents' income and stated: "They've all gone backwards".

He rubbished ideas that grocery retailers ought to face a windfall tax much like that imposed on the oil and gasoline firms - Shell and BP have revealed file income in latest months on the again of elevated oil and gasoline costs because of the warfare in Ukraine.

He stated evaluating the 2 was "comparing an apple and a pear", including that meals retailers' revenue margins are between 3% and 4% and shoppers got "massive choice and, in real terms, fantastic value for money".

"I'm not an economist, I'm a business - but I've been in business for 50 years.

"You cannot intrude with market forces.

"At the end of the day, you have to trust us as retailers to give our consumers the best deals.

"Our prospects are very savvy, they're very sensible.

"They know that we're working hard to do things their behalf and we will continue to do so.

"Intervention at all times brings unintended penalties and, personally, I'd not suggest it."

Similar sentiments were expressed by Andrew Opie, the director of food and sustainability at the British Retail Consortium.

Mr Opie told Sky News the pledge was "meaningless" and that it was "extremely unlikely" that any of the BRC members would sign up.

The trade association's members include Tesco, Iceland, Asda, Sainsbury's, Waitrose, Ocado, Morrisons, and Aldi.

Mr Opie added that prices "could not" come down any more as "there is no cash left within the provide chain".

Content Source: information.sky.com