Government ministers are pressing supermarkets to voluntarily freeze the price of key groceries such as eggs, bread and milk, in return for an easing of regulations including packaging policies and potential delays to healthy food rules. Supermarkets will not be forced to cap prices.

Treasury secretary Dan Tomlinson confirmed talks had taken place “about the steps that they can take to support people with the cost of living”, though even a voluntary scheme was described by former Ocado chairman and Conservative peer Lord Rose as “idiotic” and “the stuff of nonsense”.

The British Retail Consortium hit back, warning that “1970s style price controls” would “force retailers to sell goods at a loss” and argued the government should instead reduce the public policy costs driving food prices up noting the UK already has the most affordable grocery prices in Western Europe.

Price rises are being driven by the US-Israel-Iran conflict disrupting the Strait of Hormuz (pushing up fertiliser and animal feed costs) and government policies such as national living wage increases and higher employer NI contributions. April food inflation stood at 3%, above the overall 2.8% rate, with some warning it could near 10% by year end.

Chancellor Rachel Reeves vowed not to tolerate anyone “exploiting a crisis to make a quick buck” and announced new powers for the Competition and Markets Authority to name and shame firms and rapidly investigate price gouging.