A Government minister denied plans for price caps but confirmed that it is holding talks with supermarkets amid concerns over rising inflation.

The price of eggs, bread and milk would be voluntarily capped under the proposals in return for easing packaging policies and delaying rule changes around healthy food.

British supermarkets are set to cap prices on everyday essentials like eggs, bread and milk under bold new government proposals - but ministers say this would not be a return to…

It comes as new figures show CPI fell to 2.8 per cent