CMA will launch a detailed probe into ten product areas including milk, bread, and baby formula to ensure households benefit from lower prices as cost inflation falls

On that subject, the maker of Mr Kipling cakes, Oxo cubes and Bisto gravy granules has said it believes recent food cost inflation has peaked, and it is not planning any more price rises for its food products for the rest of the year.

The news came as owner Premier Foods reported a 21% increase in sales in the first quarter of the financial year, compared with a year earlier.

Evidence to date indicates high food price inflation has not been driven by weak retail competition, but competitive pressure is important as input prices fall

Next phase of CMA probe will examine competition and prices across the supply chain for the product categories identified

Rules on unit pricing should be tightened and retailers must comply to help shoppers compare prices easily

Not everyone is able to benefit fully from strong competition, particularly those who cannot travel to large stores or shop online, and therefore may rely on higher-priced convenience stores.

Now that some input costs are starting to fall, there are some signs that grocery retailers are planning to start rebuilding their profit margins. The CMA will monitor this carefully in the months ahead, to ensure that people benefit from competitive prices as input costs fall.