- The Bank of England has warned that supermarkets could introduce "dynamic pricing," allowing them to increase the cost of goods when demand is high.
- This pricing method, already familiar from services like Amazon and Uber, could become commonplace for essential items such as food.
- Clare Lombardelli, the Bank's Deputy Governor for Monetary Policy, said that digitalisation has significantly reduced the cost of changing prices, making dynamic pricing more viable.
- Supermarkets are currently installing digital price displays, with Morrisons planning to implement them across all its stores, which could facilitate future dynamic pricing.
- A move to dynamic pricing for essential food items would likely be controversial, despite arguments that prices can also fall and consumers can adjust their shopping behaviour.
IN FULL
