"There are certainly plenty of people in this govt whose understanding of economics is so poor that they might consider it a good idea."

The Treasury is putting pressure on supermarkets to cap prices on staple groceries as a quid pro quo for axing taxes and red tape

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.

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