OFT raids supermarkets and suppliers

By Dan Lalor

LONDON (Reuters) - Sainsbury said on Sunday it had been visited by officials from the consumer affairs watchdog, after a report of a widespread inquiry into alleged price fixing by supermarket operators and suppliers.

The Sunday Telegraph newspaper said the Office of Fair Trading (OFT) was investigating prices of health and beauty products as well as groceries, as part of its biggest-ever probe. An OFT spokeswoman would not comment.

Sainsbury said: "We have been asked for some information regarding a number of suppliers and product categories and are helping the OFT with their enquiries. We do not have any further knowledge of the details of their concerns".

The Sunday Telegraph said Sainsbury and the other three big supermarket chains -- Wal-Mart owned Asda, Morrisons and Tesco -- as well smaller operators and suppliers were raided by the OFT, which took copies of e-mails.

The timing will attract attention as Britain's Competition Commission is due to publish the results of a separate two-year investigation into the grocery market by May 8.

A spokeswoman for Tesco would not comment on the report but said that in general the company absolutely denied any allegations of collusion. Asda and Morrison were not immediately available for comment.

FOOD PRICES

Food prices have been rising worldwide as more prosperous emerging economies, led by China, have the means to buy more milk, cereals and meat. Latest official data showed British food prices rose 5.5 percent in the year to March.