Grocery bigwigs have branded reports of price caps on essential food 'idiotic' but others say action is needed to help millions of cost of living hammered households

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