Bullying

"Supermarket pledges to drive down the price of staple goods and help cash-strapped shoppers looked increasingly vulnerable last night after Britain's biggest food manufacturer insisted even the largest superstore groups would have to stomach higher prices from suppliers that are struggling with steep rises in ingredient costs.

Last night Tesco issued an uncharacteristically conciliatory statement. "Where there are genuine cost price pressures in the supply chain we are always open to discussion with suppliers. We will continue to do all we can to keep prices as low as possible for shoppers but when wholesale costs go up some prices in store may follow to reflect that."

The carefully worded comment comes after the Competition Commission, which is coming to the end of an investigation into the dominance of supermarkets, last month ordered Asda and Tesco to hand over millions of emails exchanged with their suppliers. Some suppliers have privately accused supermarkets of bullying them on price." (Thanks Rania)