Food firms raising prices unnecessarily, Tesco's John Allan says

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Food firms raising prices unnecessarily, Tesco's John Allan says
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Food costs including milk and cheese are rising at their fastest since 1977.

Some food firms may be using inflation as an excuse to hike prices further than necessary, the chairman of Tesco has said.

Mr Allan said all supermarkets were challenging cost increases from suppliers where they could - and Tesco was confronting companies it believed were increasing prices beyond what was necessary."We have a team who can look at the composition of food, costs of commodities, and work out whether or not these cost increases are legitimate."Tesco, which has a 27.5% share of the

Inflation, which measures the rate of price rises, fell to 10.5% in the year to December from 10.7% in November - but remains at levels not seen for 40 years.Basics such as milk, cheese and eggs saw the biggest increases. Prices for jam, honey and chocolate also jumped. However, price growth slowed for bread and cereals.

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