Prices of milk, eggs and bread could be frozen over Iran war fears

The UK is said to have the most affordable grocery prices in Western Europe, but a cost-of-living squeeze might be on the way (Picture: Bloomberg/Getty Images)

Supermarkets could limit food prices from going up by capping groceries like bread and milk.

Cost-of-living fears are growing despite UK inflation falling back to its lowest level for more than a year, pushed by a drop in energy prices which has offset the skyrocketing fuel costs due to the Iran war.

In a bid to tackle rising prices, Chancellor Rachle Reeves and the Treasury are said to have asked major supermarkets to cap the prices of mi...