The Governor of the Bank of England spoke yesterday of the need for regulators to act against retailers who are taking advantage of the current situation to keep the price of their products high to protect their margins and increase their bottom line.

Andrew Bailey’s comments come after it was revealed that drivers had paid over a billion pounds more for fuel at supermarkets over the past year as retailers tried to increase their profit margins.

Jeremy Hunt held talks recently with a wide range of retail bodies to discuss ways in which those struggling with the cost of living are not being unfairly targeted.

There have been complaints recently that two highly emotive sectors are taking advantage of the situation. The price of fuel is one, while banks are also being accused of raising rates to borrowers as soon as, or in some cases before, official rates are increased, while the rates paid to savers are still low.

Bailey believes that the headline rate of inflation that remained at 8.7% will begin to fall rapidly towards the Bank’s 2% target towards the end of the year.

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