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As inflation continues to push up grocery bills, supermarket chain Tesco has warned that some food producers may be taking advantage of the situation by raising prices more than necessary.

The chairman of Tesco, one of Britain’s largest supermarket chains, said Sunday it was “entirely possible” that some food firms are profiteering from inflation at the cost of some of the poorest consumers.

John Allan told the BBC that Tesco had “fallen out” with “a number of suppliers,” following discussions over price hikes that the supermarket had challenged.

Tesco has created a team to monitor food input costs against price rises and is challenging companies it believes are lifting prices disproportionately, Allen said.

“We have a team who can look at the composition of food, costs of commodities, and work out whether or not these cost increases are legitimate,” he told the “Sunday with Laura Kuenssberg” program.

Allan said that, while most price hikes were legitimate, the supermarket was “trying hard to challenge” those it deemed were not.

Tesco told CNBC that it was unable to provide further comment.

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