Suppliers of branded goods including baked beans and pet food have pushed up prices by more than their costs.
According to the competition watchdog, the Competition and Markets Authority (CMA) has been examining 10 product categories in a bid to see if shoppers, already struggling amid the continuing cost of living crisis, are being ripped off.
"The evidence collected by the CMA indicates that, over the last two years, around three-quarters of branded suppliers in products such as infant formula, baked beans, mayonnaise, and pet food - have increased their unit profitability and, in doing so, have contributed to higher food price inflation", the regulator's statement said.
The shifts were likely to have backfired somewhat as shoppers had clearly switched to cheaper, supermarket own brand, alternatives in a bid to save cash.
The regulator will hope that the competition will help prices of branded goods come down. But brands told the inquiry that when their costs started to fall they would offer promotions to customers, rather than cut the standard costs of their products.
