We must monitor our own price hikes

THE European Commission said it is largely up to national governments to monitor supermarkets, and take action where competition rules are broken by engineering-agreed, food-price hikes.

Some of the price rises cannot be justified by increases in farm production costs, according to the commission.

Agriculture spokesman Michael Mann said the price of the cereal only adds up to 5% of bread prices.

French prime minister Francois Fillon has pledged to tackle food companies using high commodity prices to boost their own margins.

French food prices rose by as much as 48% between November, 2007 and January, 2008. A government enquiry has been launched into food profit margins. A survey of 1,055 food products by a consumers’ group showed 200 foods were 10% dearer in January than November.